The shares of Kinross Gold Corporation (NYSE:KGC) and J.C. Penney Company, Inc. Holding Company (NYSE:JCP) were among the active stocks of the last trading sessions. Kinross Gold Corporation (NYSE:KGC) soared to 4.59% closing at the price of $2.96 whereas the shares of J.C. Penney Company, Inc. Holding Company (NYSE:JCP) soared 1.69% with the increase of 0.03 points closing at the price of $1.81. Kinross Gold Corporation has currently decrease -22.51% in its stock over the period of 6-months while its rival J.C. Penney Company, Inc. Holding Company subtracted -41.8% 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 Kinross Gold Corporation (NYSE:KGC) is 7.2% while the ROI of J.C. Penney Company, Inc. Holding Company (NYSE:JCP) is 2.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, KGC’s EBITDA Margin is 3.48 whereas JCP’s is 5.74.
Both the profitability ratios suggest a mixed sentiment for Kinross Gold Corporation (NYSE:KGC) and J.C. Penney Company, Inc. Holding Company (NYSE:JCP).
EPS & Surprise Factor
Kinross Gold Corporation (NYSE:KGC) reported $0.03/share EPS for the previous quarter where analysts were predicting an EPS to be $0.03/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, J.C. Penney Company, Inc. Holding Company (NYSE:JCP) reported EPS of $-0.38/share in the last quarter. The analysts projected EPS of $-0.06/share depicting a Surprise of -533.3 Percent.
Taking a look at Earnings per Share, Kinross Gold Corporation tends to be beating the analyst estimates more than J.C. Penney Company, Inc. Holding Company. so KGC is more profitable than JCP.
Technical Analysis of Kinross Gold Corporation & J.C. Penney Company, Inc. Holding Company
Moving average convergence divergence (MACD) shows that Kinross Gold Corporation (NYSE:KGC) is on a PRICE RELATIVITY trend While J.C. Penney Company, Inc. Holding Company (NYSE:JCP) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Kinross Gold Corporation was in BULLISH territory and J.C. Penney Company, Inc. Holding Company was in BULLISH territory.
KGC’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While JCP’s candle is BULLISH with HIGH.
EPS Growth Rate: KGC’s 11.57% versus JCP’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 Kinross Gold Corporation (NYSE:KGC) is predicted at 11.57% while J.C. Penney Company, Inc. Holding Company (NYSE:JCP) stands at 0%. These numbers suggest that KGC 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 KGC stands at 3.7 while JCP is at 1.6 whereas the debt ratio of the prior is 0.38 while the debt ratio of the later is 3.47.
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 2.5 for KGC and 3.3 for JCP which means KGC has Hold rating whereas JCP has Sell 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 KGC is $4.62 which is 35.93% of its current price while JCP has price target of 1.58 which is -14.56% 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.
KGC currently has price to earning P/E ratio of 9.64 whereas JCP has 0 while the forward P/E ratio for the prior stands at 19.87 and for the later it depicts the value of 0.
The price to Book P/B for KGC is 0.8, Price to Sale is at 1.12 and for JCP these ratios stand at 0.47 and 0.05.