The shares of Prologis, Inc. (NYSE:PLD) and Manulife Financial Corp (NYSE:MFC) were among the active stocks of the last trading sessions. Prologis, Inc. (NYSE:PLD) declined to -4.15% closing at the price of $62.84 whereas the shares of Manulife Financial Corp (NYSE:MFC) declined -2.62% with the decrease of -0.42 points closing at the price of $15.6. Prologis, Inc. has currently increase 0.93% in its stock over the period of 6-months while its rival Manulife Financial Corp subtracted -15.22% 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 Prologis, Inc. (NYSE:PLD) is 2.6% while the ROI of Manulife Financial Corp (NYSE:MFC) is 7.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PLD’s EBITDA Margin is 25.36 whereas MFC’s is 9.84.
Both the profitability ratios suggest a mixed sentiment for Prologis, Inc. (NYSE:PLD) and Manulife Financial Corp (NYSE:MFC).
EPS & Surprise Factor
Prologis, Inc. (NYSE:PLD) reported $0.62/share EPS for the previous quarter where analysts were predicting an EPS to be $0.38/share Thus beating the analyst Estimates with a Surprise Factor of 63.2 Percent. While, Manulife Financial Corp (NYSE:MFC) reported EPS of $0.48/share in the last quarter. The analysts projected EPS of $0.46/share depicting a Surprise of 4.3 Percent.
Taking a look at Earnings per Share, Prologis, Inc. tends to be beating the analyst estimates more than Manulife Financial Corp. so PLD is more profitable than MFC.
Technical Analysis of Prologis, Inc. & Manulife Financial Corp
Moving average convergence divergence (MACD) shows that Prologis, Inc. (NYSE:PLD) is on a PRICE RELATIVITY trend While Manulife Financial Corp (NYSE:MFC) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Prologis, Inc. was in BEARISH territory and Manulife Financial Corp was in BEARISH territory.
PLD’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While MFC’s candle is BEARISH with HIGH.
EPS Growth Rate: PLD’s -6.05% versus MFC’s 8.82%
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 Prologis, Inc. (NYSE:PLD) is predicted at -6.05% while Manulife Financial Corp (NYSE:MFC) stands at 8.82%. These numbers suggest that MFC 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 PLD stands at 0 while MFC is at 0 whereas the debt ratio of the prior is 0.61 while the debt ratio of the later is 0.33.
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 1.8 for PLD and 1.5 for MFC which means PLD has Buy rating whereas MFC 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 PLD is $71.75 which is 12.42% of its current price while MFC has price target of 23.61 which is 33.93% 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.
PLD currently has price to earning P/E ratio of 18.09 whereas MFC has 16.44 while the forward P/E ratio for the prior stands at 33.95 and for the later it depicts the value of 5.46.
The price to Book P/B for PLD is 2.15, Price to Sale is at 15.66 and for MFC these ratios stand at 0.99 and 0.82.