The shares of Spirit Realty Capital, Inc. (NYSE:SRC) and Boeing Company (The) (NYSE:BA) were among the active stocks of the last trading sessions. Spirit Realty Capital, Inc. (NYSE:SRC) declined to -3.34% closing at the price of $7.53 whereas the shares of Boeing Company (The) (NYSE:BA) declined -2.55% with the decrease of -9.36 points closing at the price of $358.11. Spirit Realty Capital, Inc. has currently increase 5.3% in its stock over the period of 6-months while its rival Boeing Company (The) added 8.76% 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 Spirit Realty Capital, Inc. (NYSE:SRC) is 0.2% while the ROI of Boeing Company (The) (NYSE:BA) is 52.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SRC’s EBITDA Margin is 9.36 whereas BA’s is 17.19.
Both the profitability ratios suggest that Boeing Company (The) (NYSE:BA) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Spirit Realty Capital, Inc. (NYSE:SRC) reported $0.03/share EPS for the previous quarter where analysts were predicting an EPS to be $0.06/share Thus lagging the analyst Estimates with a Surprise Factor of -50 Percent. While, Boeing Company (The) (NYSE:BA) reported EPS of $3.33/share in the last quarter. The analysts projected EPS of $3.26/share depicting a Surprise of 2.1 Percent.
Taking a look at Earnings per Share, Boeing Company (The) tends to be beating the analyst estimates more than Spirit Realty Capital, Inc.. so BA is more profitable than SRC.
Technical Analysis of Spirit Realty Capital, Inc. & Boeing Company (The)
Moving average convergence divergence (MACD) shows that Spirit Realty Capital, Inc. (NYSE:SRC) is on a PRICE RELATIVITY trend While Boeing Company (The) (NYSE:BA) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Spirit Realty Capital, Inc. was in BEARISH territory and Boeing Company (The) was in BEARISH territory.
SRC’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While BA’s candle is BEARISH with HIGH.
EPS Growth Rate: SRC’s 37.47% versus BA’s 20.98%
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 Spirit Realty Capital, Inc. (NYSE:SRC) is predicted at 37.47% while Boeing Company (The) (NYSE:BA) stands at 20.98%. These numbers suggest that SRC 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 SRC stands at 0 while BA is at 1.1 whereas the debt ratio of the prior is 0.69 while the debt ratio of the later is 0.
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 SRC and 2 for BA which means SRC has Hold rating whereas BA 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 SRC is $9.39 which is 19.81% of its current price while BA has price target of 412.57 which is 13.2% 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.
SRC currently has price to earning P/E ratio of 52.29 whereas BA has 24.91 while the forward P/E ratio for the prior stands at 33.03 and for the later it depicts the value of 20.24.
The price to Book P/B for SRC is 1.21, Price to Sale is at 5.97 and for BA these ratios stand at 0 and 2.13.