Which Stock Worth Selling? Mastercard Incorporated (MA) or Oasis Petroleum Inc. (OAS)

The shares of Mastercard Incorporated (NYSE:MA) and Oasis Petroleum Inc. (NYSE:OAS) were among the active stocks of the last trading sessions. Mastercard Incorporated (NYSE:MA) declined to -6.23% closing at the price of $196.69 whereas the shares of Oasis Petroleum Inc. (NYSE:OAS) declined -4.91% with the decrease of -0.65 points closing at the price of $12.58. Mastercard Incorporated has currently increase 12.52% in its stock over the period of 6-months while its rival Oasis Petroleum Inc. added 44.1% 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 Mastercard Incorporated (NYSE:MA) is 44% while the ROI of Oasis Petroleum Inc. (NYSE:OAS) is 3.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, MA’s EBITDA Margin is 26.76 whereas OAS’s is 7.36.

Both the profitability ratios suggest that Mastercard Incorporated (NYSE:MA) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Mastercard Incorporated (NYSE:MA) reported $1.66/share EPS for the previous quarter where analysts were predicting an EPS to be $1.53/share Thus beating the analyst Estimates with a Surprise Factor of 8.5 Percent. While, Oasis Petroleum Inc. (NYSE:OAS) reported EPS of $0.1/share in the last quarter. The analysts projected EPS of $0.07/share depicting a Surprise of 42.9 Percent.

Taking a look at Earnings per Share, Oasis Petroleum Inc. tends to be beating the analyst estimates more than Mastercard Incorporated. so OAS is more profitable than MA.

Technical Analysis of Mastercard Incorporated & Oasis Petroleum Inc.

Moving average convergence divergence (MACD) shows that Mastercard Incorporated (NYSE:MA) is on a PRICE RELATIVITY trend While Oasis Petroleum Inc. (NYSE:OAS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Mastercard Incorporated was in BEARISH territory and Oasis Petroleum Inc. was in BEARISH territory.

MA’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While OAS’s candle is BEARISH with HIGH.

EPS Growth Rate: MA’s 22.57% versus OAS’s 0%

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 Mastercard Incorporated (NYSE:MA) is predicted at 22.57% while Oasis Petroleum Inc. (NYSE:OAS) stands at 0%. These numbers suggest that MA 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 MA stands at 1.5 while OAS is at 0.5 whereas the debt ratio of the prior is 1.11 while the debt ratio of the later is 0.8.

The values of the both ratios suggest that MA is more suitable investment when the liquidity and risk is the main concern.

Analyst Recommendations

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 1.7 for MA and 2.3 for OAS which means MA has Buy rating whereas OAS has Hold 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 MA is $232.03 which is 15.23% of its current price while OAS has price target of 15.87 which is 20.73% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

MA currently has price to earning P/E ratio of 37.89 whereas OAS has 0 while the forward P/E ratio for the prior stands at 26.21 and for the later it depicts the value of 13.26.

The price to Book P/B for MA is 39.03, Price to Sale is at 14.83 and for OAS these ratios stand at 1.15 and 2.54.