The shares of Newfield Exploration Company (NYSE:NFX) and Intellipharmaceutics International Inc. (NASDAQ:IPCI) were among the active stocks of the last trading sessions. Newfield Exploration Company (NYSE:NFX) declined to -5.41% closing at the price of $25.18 whereas the shares of Intellipharmaceutics International Inc. (NASDAQ:IPCI) declined -22.12% with the decrease of -0.23 points closing at the price of $0.81. Newfield Exploration Company has currently decrease -2.74% in its stock over the period of 6-months while its rival Intellipharmaceutics International Inc. subtracted -86.75% 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 Newfield Exploration Company (NYSE:NFX) is 13.4% while the ROI of Intellipharmaceutics International Inc. (NASDAQ:IPCI) is -486.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NFX’s EBITDA Margin is 7.94 whereas IPCI’s is -0.67.
Both the profitability ratios suggest that Newfield Exploration Company (NYSE:NFX) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Newfield Exploration Company (NYSE:NFX) reported $0.94/share EPS for the previous quarter where analysts were predicting an EPS to be $0.82/share Thus beating the analyst Estimates with a Surprise Factor of 14.6 Percent. While, Intellipharmaceutics International Inc. (NASDAQ:IPCI) reported EPS of $-0.7/share in the last quarter. The analysts projected EPS of $-0.7/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Newfield Exploration Company tends to be beating the analyst estimates more than Intellipharmaceutics International Inc.. so NFX is more profitable than IPCI.
Technical Analysis of Newfield Exploration Company & Intellipharmaceutics International Inc.
Moving average convergence divergence (MACD) shows that Newfield Exploration Company (NYSE:NFX) is on a PRICE RELATIVITY trend While Intellipharmaceutics International Inc. (NASDAQ:IPCI) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Newfield Exploration Company was in BEARISH territory and Intellipharmaceutics International Inc. was in BEARISH territory.
NFX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While IPCI’s candle is BEARISH with HIGH.
EPS Growth Rate: NFX’s 31.07% versus IPCI’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 Newfield Exploration Company (NYSE:NFX) is predicted at 31.07% while Intellipharmaceutics International Inc. (NASDAQ:IPCI) stands at 0%. These numbers suggest that NFX 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 NFX stands at 0.7 while IPCI is at 0.6 whereas the debt ratio of the prior is 1.48 while the debt ratio of the later is 0.
The values of the both ratios suggest that NFX is more suitable investment when the liquidity and risk is the main concern.
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 2.1 for NFX and 2 for IPCI which means NFX has Hold rating whereas IPCI 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 NFX is $38 which is 33.74% of its current price while IPCI has price target of 27.5 which is 97.05% 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.
NFX currently has price to earning P/E ratio of 14.62 whereas IPCI has 0 while the forward P/E ratio for the prior stands at 5.64 and for the later it depicts the value of 0.
The price to Book P/B for NFX is 3.07, Price to Sale is at 2.3 and for IPCI these ratios stand at 0 and 1.62.