The shares of Halcon Resources Corporation (NYSE:HK) and United Parcel Service, Inc. (NYSE:UPS) were among the active stocks of the last trading sessions. Halcon Resources Corporation (NYSE:HK) declined to -6.68% closing at the price of $4.05 whereas the shares of United Parcel Service, Inc. (NYSE:UPS) declined -2.48% with the decrease of -2.89 points closing at the price of $113.76. Halcon Resources Corporation has currently decrease -24.02% in its stock over the period of 6-months while its rival United Parcel Service, Inc. added 6.07% 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 Halcon Resources Corporation (NYSE:HK) is 59.8% while the ROI of United Parcel Service, Inc. (NYSE:UPS) is 19.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HK’s EBITDA Margin is -569.95 whereas UPS’s is 12.2.
Both the profitability ratios suggest a mixed sentiment for Halcon Resources Corporation (NYSE:HK) and United Parcel Service, Inc. (NYSE:UPS).
EPS & Surprise Factor
Halcon Resources Corporation (NYSE:HK) reported $0.15/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.05/share Thus beating the analyst Estimates with a Surprise Factor of 400 Percent. While, United Parcel Service, Inc. (NYSE:UPS) reported EPS of $1.94/share in the last quarter. The analysts projected EPS of $1.93/share depicting a Surprise of 0.5 Percent.
Taking a look at Earnings per Share, Halcon Resources Corporation tends to be beating the analyst estimates more than United Parcel Service, Inc.. so HK is more profitable than UPS.
Technical Analysis of Halcon Resources Corporation & United Parcel Service, Inc.
Moving average convergence divergence (MACD) shows that Halcon Resources Corporation (NYSE:HK) is on a PRICE RELATIVITY trend While United Parcel Service, Inc. (NYSE:UPS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Halcon Resources Corporation was in BEARISH territory and United Parcel Service, Inc. was in BEARISH territory.
HK’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While UPS’s candle is BEARISH with MEDIUM.
EPS Growth Rate: HK’s 0% versus UPS’s 11.08%
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 Halcon Resources Corporation (NYSE:HK) is predicted at 0% while United Parcel Service, Inc. (NYSE:UPS) stands at 11.08%. These numbers suggest that UPS 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 HK stands at 0.9 while UPS is at 1.2 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 9.76.
The values of the both ratios suggest that UPS 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 2.3 for HK and 2.4 for UPS which means HK has Hold rating whereas UPS 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 HK is $8.95 which is 54.75% of its current price while UPS has price target of 128.39 which is 11.39% 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.
HK currently has price to earning P/E ratio of 1.02 whereas UPS has 20.07 while the forward P/E ratio for the prior stands at 16.8 and for the later it depicts the value of 14.33.
The price to Book P/B for HK is 0.57, Price to Sale is at 2.86 and for UPS these ratios stand at 42.29 and 1.41.