Performance Comparison of Bilibili Inc. (BILI) and Louisiana-Pacific Corporation (LPX)

The shares of Bilibili Inc. (NASDAQ:BILI) and Louisiana-Pacific Corporation (NYSE:LPX) were among the active stocks of the last trading sessions. Bilibili Inc. (NASDAQ:BILI) soared to 2.17% closing at the price of $12.69 whereas the shares of Louisiana-Pacific Corporation (NYSE:LPX) declined -1.73% with the decrease of -0.41 points closing at the price of $23.28. Bilibili Inc. has currently increase 11.32% in its stock over the period of 6-months while its rival Louisiana-Pacific Corporation subtracted -22.43% 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 Bilibili Inc. (NASDAQ:BILI) is 12% while the ROI of Louisiana-Pacific Corporation (NYSE:LPX) is 19.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BILI’s EBITDA Margin is 199.38 whereas LPX’s is 3.67.

Both the profitability ratios suggest a mixed sentiment for Bilibili Inc. (NASDAQ:BILI) and Louisiana-Pacific Corporation (NYSE:LPX).

EPS & Surprise Factor

Bilibili Inc. (NASDAQ:BILI) reported $-0.01/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.03/share Thus beating the analyst Estimates with a Surprise Factor of 66.7 Percent. While, Louisiana-Pacific Corporation (NYSE:LPX) reported EPS of $1.08/share in the last quarter. The analysts projected EPS of $0.98/share depicting a Surprise of 10.2 Percent.

Taking a look at Earnings per Share, Bilibili Inc. tends to be beating the analyst estimates more than Louisiana-Pacific Corporation. so BILI is more profitable than LPX.

Technical Analysis of Bilibili Inc. & Louisiana-Pacific Corporation

Moving average convergence divergence (MACD) shows that Bilibili Inc. (NASDAQ:BILI) is on a PRICE RELATIVITY trend While Louisiana-Pacific Corporation (NYSE:LPX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Bilibili Inc. was in territory and Louisiana-Pacific Corporation was in BEARISH territory.

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

EPS Growth Rate: BILI’s 0% versus LPX’s 5%

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 Bilibili Inc. (NASDAQ:BILI) is predicted at 0% while Louisiana-Pacific Corporation (NYSE:LPX) stands at 5%. These numbers suggest that LPX 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 BILI stands at 2.4 while LPX is at 5.7 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.21.

The values of the both ratios suggest that LPX 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 1.8 for BILI and 2.5 for LPX which means BILI has Buy rating whereas LPX 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 BILI is $14.06 which is 9.74% of its current price while LPX has price target of 33 which is 29.45% 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.

BILI currently has price to earning P/E ratio of 0 whereas LPX has 7.09 while the forward P/E ratio for the prior stands at 112.3 and for the later it depicts the value of 9.44.

The price to Book P/B for BILI is 4.81, Price to Sale is at 7.34 and for LPX these ratios stand at 1.91 and 1.15.