The shares of Imperva, Inc. (NASDAQ:IMPV) and Marathon Petroleum Corporation (NYSE:MPC) were among the active stocks of the last trading sessions. Imperva, Inc. (NASDAQ:IMPV) soared to 27.98% closing at the price of $55.11 whereas the shares of Marathon Petroleum Corporation (NYSE:MPC) declined -3.71% with the decrease of -3.11 points closing at the price of $80.65. Imperva, Inc. has currently increase 18.9% in its stock over the period of 6-months while its rival Marathon Petroleum Corporation added 8.62% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Imperva, Inc. (NASDAQ:IMPV) is -4.6% while the ROI of Marathon Petroleum Corporation (NYSE:MPC) is 10.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, IMPV’s EBITDA Margin is 519.61 whereas MPC’s is 8.35.
Both the profitability ratios suggest a mixed sentiment for Imperva, Inc. (NASDAQ:IMPV) and Marathon Petroleum Corporation (NYSE:MPC).
EPS & Surprise Factor
Imperva, Inc. (NASDAQ:IMPV) reported $-0.26/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.33/share Thus beating the analyst Estimates with a Surprise Factor of 21.2 Percent. While, Marathon Petroleum Corporation (NYSE:MPC) reported EPS of $2.27/share in the last quarter. The analysts projected EPS of $2.03/share depicting a Surprise of 11.8 Percent.
Taking a look at Earnings per Share, Imperva, Inc. tends to be beating the analyst estimates more than Marathon Petroleum Corporation. so IMPV is more profitable than MPC.
Technical Analysis of Imperva, Inc. & Marathon Petroleum Corporation
Moving average convergence divergence (MACD) shows that Imperva, Inc. (NASDAQ:IMPV) is on a PRICE RELATIVITY trend While Marathon Petroleum Corporation (NYSE:MPC) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Imperva, Inc. was in BULLISH territory and Marathon Petroleum Corporation was in BULLISH territory.
IMPV’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While MPC’s candle is BEARISH with MEDIUM.
EPS Growth Rate: IMPV’s 25% versus MPC’s 57.94%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Imperva, Inc. (NASDAQ:IMPV) is predicted at 25% while Marathon Petroleum Corporation (NYSE:MPC) stands at 57.94%. These numbers suggest that MPC is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of IMPV stands at 2.7 while MPC is at 1.6 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 1.15.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.7 for IMPV and 1.8 for MPC which means IMPV has Hold rating whereas MPC has Buy rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for IMPV is $53.92 which is -2.21% of its current price while MPC has price target of 103.08 which is 21.76% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
IMPV currently has price to earning P/E ratio of 0 whereas MPC has 15.6 while the forward P/E ratio for the prior stands at 55.67 and for the later it depicts the value of 10.49.
The price to Book P/B for IMPV is 5.84, Price to Sale is at 5.67 and for MPC these ratios stand at 2.47 and 0.45.