The shares of Autodesk, Inc. (NASDAQ:ADSK) and Whiting Petroleum Corporation (NYSE:WLL) were among the active stocks of the last trading sessions. Autodesk, Inc. (NASDAQ:ADSK) declined to -1.96% closing at the price of $130.89 whereas the shares of Whiting Petroleum Corporation (NYSE:WLL) declined -1.28% with the decrease of -0.55 points closing at the price of $42.29. Autodesk, Inc. has currently increase 1.33% in its stock over the period of 6-months while its rival Whiting Petroleum Corporation added 9.47% 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 Autodesk, Inc. (NASDAQ:ADSK) is -41.4% while the ROI of Whiting Petroleum Corporation (NYSE:WLL) is -12.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ADSK’s EBITDA Margin is -226.12 whereas WLL’s is 7.94.
Both the profitability ratios suggest that Whiting Petroleum Corporation (NYSE:WLL) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Autodesk, Inc. (NASDAQ:ADSK) reported $0.19/share EPS for the previous quarter where analysts were predicting an EPS to be $0.16/share Thus beating the analyst Estimates with a Surprise Factor of 18.8 Percent. While, Whiting Petroleum Corporation (NYSE:WLL) reported EPS of $0.63/share in the last quarter. The analysts projected EPS of $0.65/share depicting a Surprise of -3.1 Percent.
Taking a look at Earnings per Share, Autodesk, Inc. tends to be beating the analyst estimates more than Whiting Petroleum Corporation. so ADSK is more profitable than WLL.
Technical Analysis of Autodesk, Inc. & Whiting Petroleum Corporation
Moving average convergence divergence (MACD) shows that Autodesk, Inc. (NASDAQ:ADSK) is on a PRICE RELATIVITY trend While Whiting Petroleum Corporation (NYSE:WLL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Autodesk, Inc. was in BEARISH territory and Whiting Petroleum Corporation was in BEARISH territory.
ADSK’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While WLL’s candle is BEARISH with HIGH.
EPS Growth Rate: ADSK’s 53.93% versus WLL’s 0%
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 Autodesk, Inc. (NASDAQ:ADSK) is predicted at 53.93% while Whiting Petroleum Corporation (NYSE:WLL) stands at 0%. These numbers suggest that ADSK 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 ADSK stands at 0.8 while WLL is at 0.5 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.71.
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 for ADSK and 2.3 for WLL which means ADSK has Buy rating whereas WLL 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 ADSK is $163.48 which is 19.94% of its current price while WLL has price target of 59.25 which is 28.62% 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.
ADSK currently has price to earning P/E ratio of 0 whereas WLL has 0 while the forward P/E ratio for the prior stands at 40.92 and for the later it depicts the value of 10.41.
The price to Book P/B for ADSK is 0, Price to Sale is at 12.78 and for WLL these ratios stand at 0.98 and 2.19.