The shares of New York Community Bancorp, Inc. (NYSE:NYCB) and Exelon Corporation (NYSE:EXC) were among the active stocks of the last trading sessions. New York Community Bancorp, Inc. (NYSE:NYCB) declined to -3.71% closing at the price of $10.12 whereas the shares of Exelon Corporation (NYSE:EXC) declined -1.91% with the decrease of -0.83 points closing at the price of $42.73. New York Community Bancorp, Inc. has currently decrease -20.19% in its stock over the period of 6-months while its rival Exelon Corporation added 11.45% 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 New York Community Bancorp, Inc. (NYSE:NYCB) is 12.4% while the ROI of Exelon Corporation (NYSE:EXC) is 6.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NYCB’s EBITDA Margin is NOT AVAILABLE whereas EXC’s is 7.83.
Both the profitability ratios suggest that New York Community Bancorp, Inc. (NYSE:NYCB) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
New York Community Bancorp, Inc. (NYSE:NYCB) reported $0.2/share EPS for the previous quarter where analysts were predicting an EPS to be $0.21/share Thus lagging the analyst Estimates with a Surprise Factor of -4.8 Percent. While, Exelon Corporation (NYSE:EXC) reported EPS of $0.71/share in the last quarter. The analysts projected EPS of $0.61/share depicting a Surprise of 16.4 Percent.
Taking a look at Earnings per Share, Exelon Corporation tends to be beating the analyst estimates more than New York Community Bancorp, Inc.. so EXC is more profitable than NYCB.
Technical Analysis of New York Community Bancorp, Inc. & Exelon Corporation
Moving average convergence divergence (MACD) shows that New York Community Bancorp, Inc. (NYSE:NYCB) is on a PRICE RELATIVITY trend While Exelon Corporation (NYSE:EXC) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the New York Community Bancorp, Inc. was in BULLISH territory and Exelon Corporation was in BEARISH territory.
NYCB’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While EXC’s candle is BEARISH with MEDIUM.
EPS Growth Rate: NYCB’s 0% versus EXC’s 4.3%
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 New York Community Bancorp, Inc. (NYSE:NYCB) is predicted at 0% while Exelon Corporation (NYSE:EXC) stands at 4.3%. These numbers suggest that EXC 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 NYCB stands at 0 while EXC is at 1.2 whereas the debt ratio of the prior is 0.06 while the debt ratio of the later is 1.18.
The values of the both ratios suggest that EXC 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 2.9 for NYCB and 2.1 for EXC which means NYCB has Hold rating whereas EXC 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 NYCB is $11.62 which is 12.91% of its current price while EXC has price target of 45.83 which is 6.76% 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.
NYCB currently has price to earning P/E ratio of 12.94 whereas EXC has 10.82 while the forward P/E ratio for the prior stands at 12.15 and for the later it depicts the value of 13.81.
The price to Book P/B for NYCB is 0.79, Price to Sale is at 3.1 and for EXC these ratios stand at 1.35 and 1.18.