The shares of ONEOK, Inc. (NYSE:OKE) and MINDBODY, Inc. (NASDAQ:MB) were among the active stocks of the last trading sessions. ONEOK, Inc. (NYSE:OKE) declined to -3.11% closing at the price of $65.22 whereas the shares of MINDBODY, Inc. (NASDAQ:MB) declined -7.3% with the decrease of -2.51 points closing at the price of $31.86. ONEOK, Inc. has currently increase 11.47% in its stock over the period of 6-months while its rival MINDBODY, Inc. subtracted -14.47% 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 ONEOK, Inc. (NYSE:OKE) is 7.3% while the ROI of MINDBODY, Inc. (NASDAQ:MB) is -5.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, OKE’s EBITDA Margin is 17.88 whereas MB’s is -160.23.
Both the profitability ratios suggest that ONEOK, Inc. (NYSE:OKE) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
ONEOK, Inc. (NYSE:OKE) reported $0.68/share EPS for the previous quarter where analysts were predicting an EPS to be $0.67/share Thus beating the analyst Estimates with a Surprise Factor of 1.5 Percent. While, MINDBODY, Inc. (NASDAQ:MB) reported EPS of $-0.06/share in the last quarter. The analysts projected EPS of $-0.08/share depicting a Surprise of 25 Percent.
Taking a look at Earnings per Share, MINDBODY, Inc. tends to be beating the analyst estimates more than ONEOK, Inc.. so MB is more profitable than OKE.
Technical Analysis of ONEOK, Inc. & MINDBODY, Inc.
Moving average convergence divergence (MACD) shows that ONEOK, Inc. (NYSE:OKE) is on a PRICE RELATIVITY trend While MINDBODY, Inc. (NASDAQ:MB) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the ONEOK, Inc. was in BEARISH territory and MINDBODY, Inc. was in BEARISH territory.
OKE’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While MB’s candle is BEARISH with HIGH.
EPS Growth Rate: OKE’s 42.3% versus MB’s 25%
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 ONEOK, Inc. (NYSE:OKE) is predicted at 42.3% while MINDBODY, Inc. (NASDAQ:MB) stands at 25%. These numbers suggest that OKE 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 OKE stands at 0.6 while MB is at 9.6 whereas the debt ratio of the prior is 1.23 while the debt ratio of the later is 0.86.
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 2.3 for OKE and 2.1 for MB which means OKE has Hold rating whereas MB 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 OKE is $73.2 which is 10.9% of its current price while MB has price target of 45.08 which is 29.33% 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.
OKE currently has price to earning P/E ratio of 28.66 whereas MB has 0 while the forward P/E ratio for the prior stands at 22.94 and for the later it depicts the value of 590.
The price to Book P/B for OKE is 4.03, Price to Sale is at 2.1 and for MB these ratios stand at 5.27 and 7.16.