The shares of Agnico Eagle Mines Limited (NYSE:AEM) and Realogy Holdings Corp. (NYSE:RLGY) were among the active stocks of the last trading sessions. Agnico Eagle Mines Limited (NYSE:AEM) soared to 7.73% closing at the price of $37.37 whereas the shares of Realogy Holdings Corp. (NYSE:RLGY) declined -4.3% with the decrease of -0.83 points closing at the price of $18.49. Agnico Eagle Mines Limited has currently decrease -16.7% in its stock over the period of 6-months while its rival Realogy Holdings Corp. subtracted -29.08% 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 Agnico Eagle Mines Limited (NYSE:AEM) is 4.8% while the ROI of Realogy Holdings Corp. (NYSE:RLGY) is 6.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AEM’s EBITDA Margin is 10.51 whereas RLGY’s is 8.8.
Both the profitability ratios suggest a mixed sentiment for Agnico Eagle Mines Limited (NYSE:AEM) and Realogy Holdings Corp. (NYSE:RLGY).
EPS & Surprise Factor
Agnico Eagle Mines Limited (NYSE:AEM) reported $0.01/share EPS for the previous quarter where analysts were predicting an EPS to be $0.08/share Thus lagging the analyst Estimates with a Surprise Factor of -87.5 Percent. While, Realogy Holdings Corp. (NYSE:RLGY) reported EPS of $1/share in the last quarter. The analysts projected EPS of $0.98/share depicting a Surprise of 2 Percent.
Taking a look at Earnings per Share, Realogy Holdings Corp. tends to be beating the analyst estimates more than Agnico Eagle Mines Limited. so RLGY is more profitable than AEM.
Technical Analysis of Agnico Eagle Mines Limited & Realogy Holdings Corp.
Moving average convergence divergence (MACD) shows that Agnico Eagle Mines Limited (NYSE:AEM) is on a PRICE RELATIVITY trend While Realogy Holdings Corp. (NYSE:RLGY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Agnico Eagle Mines Limited was in BULLISH territory and Realogy Holdings Corp. was in BEARISH territory.
AEM’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While RLGY’s candle is BEARISH with HIGH.
EPS Growth Rate: AEM’s 10% versus RLGY’s 20%
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 Agnico Eagle Mines Limited (NYSE:AEM) is predicted at 10% while Realogy Holdings Corp. (NYSE:RLGY) stands at 20%. These numbers suggest that RLGY 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 AEM stands at 4 while RLGY is at 0.6 whereas the debt ratio of the prior is 0.35 while the debt ratio of the later is 1.58.
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 2.2 for AEM and 2.8 for RLGY which means AEM has Hold rating whereas RLGY 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 AEM is $50.9 which is 26.58% of its current price while RLGY has price target of 28.14 which is 34.29% 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.
AEM currently has price to earning P/E ratio of 56.11 whereas RLGY has 9.74 while the forward P/E ratio for the prior stands at 48.28 and for the later it depicts the value of 8.36.
The price to Book P/B for AEM is 1.78, Price to Sale is at 3.83 and for RLGY these ratios stand at 0.96 and 0.38.