The shares of Endo International plc (NASDAQ:ENDP) and Noble Energy Inc. (NYSE:NBL) were among the active stocks of the last trading sessions. Endo International plc (NASDAQ:ENDP) declined to -4.38% closing at the price of $16.8 whereas the shares of Noble Energy Inc. (NYSE:NBL) declined -0.9% with the decrease of -0.28 points closing at the price of $30.98. Endo International plc has currently increase 206.57% in its stock over the period of 6-months while its rival Noble Energy Inc. subtracted -3.49% 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 Endo International plc (NASDAQ:ENDP) is -9.1% while the ROI of Noble Energy Inc. (NYSE:NBL) is -8.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ENDP’s EBITDA Margin is 48.82 whereas NBL’s is 9.45.
Both the profitability ratios suggest a mixed sentiment for Endo International plc (NASDAQ:ENDP) and Noble Energy Inc. (NYSE:NBL).
EPS & Surprise Factor
Endo International plc (NASDAQ:ENDP) reported $0.76/share EPS for the previous quarter where analysts were predicting an EPS to be $0.54/share Thus beating the analyst Estimates with a Surprise Factor of 40.7 Percent. While, Noble Energy Inc. (NYSE:NBL) reported EPS of $0.17/share in the last quarter. The analysts projected EPS of $0.22/share depicting a Surprise of -22.7 Percent.
Taking a look at Earnings per Share, Endo International plc tends to be beating the analyst estimates more than Noble Energy Inc.. so ENDP is more profitable than NBL.
Technical Analysis of Endo International plc & Noble Energy Inc.
Moving average convergence divergence (MACD) shows that Endo International plc (NASDAQ:ENDP) is on a PRICE RELATIVITY trend While Noble Energy Inc. (NYSE:NBL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Endo International plc was in BULLISH territory and Noble Energy Inc. was in BULLISH territory.
ENDP’s current statistics gauge that the stock candle is BEARISH with LOW volatility. While NBL’s candle is BEARISH with LOW.
EPS Growth Rate: ENDP’s -7.63% versus NBL’s 65.15%
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 Endo International plc (NASDAQ:ENDP) is predicted at -7.63% while Noble Energy Inc. (NYSE:NBL) stands at 65.15%. These numbers suggest that NBL 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 ENDP stands at 1.1 while NBL is at 0.8 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.64.
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 2.6 for ENDP and 2.3 for NBL which means ENDP has Hold rating whereas NBL 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 ENDP is $16.73 which is -0.42% of its current price while NBL has price target of 42.54 which is 27.17% 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.
ENDP currently has price to earning P/E ratio of 0 whereas NBL has 193.62 while the forward P/E ratio for the prior stands at 6.24 and for the later it depicts the value of 23.94.
The price to Book P/B for ENDP is 0, Price to Sale is at 1.25 and for NBL these ratios stand at 1.46 and 3.17.