The shares of New Residential Investment Corp. (NYSE:NRZ) and Agilent Technologies, Inc. (NYSE:A) were among the active stocks of the last trading sessions. New Residential Investment Corp. (NYSE:NRZ) declined to -1.65% closing at the price of $17.31 whereas the shares of Agilent Technologies, Inc. (NYSE:A) declined -2.67% with the decrease of -1.78 points closing at the price of $64.89. New Residential Investment Corp. has currently increase 7.32% in its stock over the period of 6-months while its rival Agilent Technologies, Inc. subtracted -3.45% 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 New Residential Investment Corp. (NYSE:NRZ) is 4.9% while the ROI of Agilent Technologies, Inc. (NYSE:A) is 10.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NRZ’s EBITDA Margin is NOT AVAILABLE whereas A’s is 18.67.
Both the profitability ratios suggest a mixed sentiment for New Residential Investment Corp. (NYSE:NRZ) and Agilent Technologies, Inc. (NYSE:A).
EPS & Surprise Factor
New Residential Investment Corp. (NYSE:NRZ) reported $0.58/share EPS for the previous quarter where analysts were predicting an EPS to be $0.55/share Thus beating the analyst Estimates with a Surprise Factor of 5.5 Percent. While, Agilent Technologies, Inc. (NYSE:A) reported EPS of $0.67/share in the last quarter. The analysts projected EPS of $0.63/share depicting a Surprise of 6.3 Percent.
Taking a look at Earnings per Share, Agilent Technologies, Inc. tends to be beating the analyst estimates more than New Residential Investment Corp.. so A is more profitable than NRZ.
Technical Analysis of New Residential Investment Corp. & Agilent Technologies, Inc.
Moving average convergence divergence (MACD) shows that New Residential Investment Corp. (NYSE:NRZ) is on a PRICE RELATIVITY trend While Agilent Technologies, Inc. (NYSE:A) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the New Residential Investment Corp. was in BEARISH territory and Agilent Technologies, Inc. was in BEARISH territory.
NRZ’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While A’s candle is BEARISH with HIGH.
EPS Growth Rate: NRZ’s 0.63% versus A’s 10.84%
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 New Residential Investment Corp. (NYSE:NRZ) is predicted at 0.63% while Agilent Technologies, Inc. (NYSE:A) stands at 10.84%. These numbers suggest that A 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 NRZ stands at 0 while A is at 3.6 whereas the debt ratio of the prior is 2.71 while the debt ratio of the later is 0.39.
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 1.7 for NRZ and 1.6 for A which means NRZ has Buy rating whereas A has Buy 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 NRZ is $19.39 which is 10.73% of its current price while A has price target of 78.79 which is 17.64% 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.
NRZ currently has price to earning P/E ratio of 4.38 whereas A has 25.4 while the forward P/E ratio for the prior stands at 7.5 and for the later it depicts the value of 21.87.
The price to Book P/B for NRZ is 1.02, Price to Sale is at 2.42 and for A these ratios stand at 4.55 and 4.32.