The shares of AGNC Investment Corp. (NASDAQ:AGNC) and Cardinal Health, Inc. (NYSE:CAH) were among the active stocks of the last trading sessions. AGNC Investment Corp. (NASDAQ:AGNC) declined to -1.44% closing at the price of $17.8 whereas the shares of Cardinal Health, Inc. (NYSE:CAH) declined -4.96% with the decrease of -2.69 points closing at the price of $51.53. AGNC Investment Corp. has currently decrease -4.35% in its stock over the period of 6-months while its rival Cardinal Health, Inc. subtracted -14.71% 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 AGNC Investment Corp. (NASDAQ:AGNC) is 0% while the ROI of Cardinal Health, Inc. (NYSE:CAH) is -1.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AGNC’s EBITDA Margin is NOT AVAILABLE whereas CAH’s is 7.94.
Both the profitability ratios suggest that AGNC Investment Corp. (NASDAQ:AGNC) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
AGNC Investment Corp. (NASDAQ:AGNC) reported $0.63/share EPS for the previous quarter where analysts were predicting an EPS to be $0.61/share Thus beating the analyst Estimates with a Surprise Factor of 3.3 Percent. While, Cardinal Health, Inc. (NYSE:CAH) reported EPS of $1.01/share in the last quarter. The analysts projected EPS of $0.93/share depicting a Surprise of 8.6 Percent.
Taking a look at Earnings per Share, Cardinal Health, Inc. tends to be beating the analyst estimates more than AGNC Investment Corp.. so CAH is more profitable than AGNC.
Technical Analysis of AGNC Investment Corp. & Cardinal Health, Inc.
Moving average convergence divergence (MACD) shows that AGNC Investment Corp. (NASDAQ:AGNC) is on a PRICE RELATIVITY trend While Cardinal Health, Inc. (NYSE:CAH) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the AGNC Investment Corp. was in BEARISH territory and Cardinal Health, Inc. was in BEARISH territory.
AGNC’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While CAH’s candle is BEARISH with HIGH.
EPS Growth Rate: AGNC’s 1.4% versus CAH’s 4.94%
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 AGNC Investment Corp. (NASDAQ:AGNC) is predicted at 1.4% while Cardinal Health, Inc. (NYSE:CAH) stands at 4.94%. These numbers suggest that CAH 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 AGNC stands at 0 while CAH is at 1.1 whereas the debt ratio of the prior is 5.74 while the debt ratio of the later is 1.49.
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 2.9 for AGNC and 2.8 for CAH which means AGNC has Hold rating whereas CAH 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 AGNC is $18.91 which is 5.87% of its current price while CAH has price target of 54.93 which is 6.19% 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.
AGNC currently has price to earning P/E ratio of 5.14 whereas CAH has 0 while the forward P/E ratio for the prior stands at 7.61 and for the later it depicts the value of 9.48.
The price to Book P/B for AGNC is 0.84, Price to Sale is at 3.87 and for CAH these ratios stand at 2.64 and 0.11.