The shares of Celgene Corporation (NASDAQ:CELG) and Northern Oil and Gas, Inc. (NYSE:NOG) were among the active stocks of the last trading sessions. Celgene Corporation (NASDAQ:CELG) declined to -4.18% closing at the price of $80.71 whereas the shares of Northern Oil and Gas, Inc. (NYSE:NOG) declined -8.44% with the decrease of -0.32 points closing at the price of $3.47. Celgene Corporation has currently decrease -9.72% in its stock over the period of 6-months while its rival Northern Oil and Gas, Inc. added 111.59% 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 Celgene Corporation (NASDAQ:CELG) is 20% while the ROI of Northern Oil and Gas, Inc. (NYSE:NOG) is 12.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CELG’s EBITDA Margin is 15.66 whereas NOG’s is 15.59.
Both the profitability ratios suggest that Celgene Corporation (NASDAQ:CELG) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Celgene Corporation (NASDAQ:CELG) reported $2.16/share EPS for the previous quarter where analysts were predicting an EPS to be $2.11/share Thus beating the analyst Estimates with a Surprise Factor of 2.4 Percent. While, Northern Oil and Gas, Inc. (NYSE:NOG) reported EPS of $0.09/share in the last quarter. The analysts projected EPS of $0.08/share depicting a Surprise of 12.5 Percent.
Taking a look at Earnings per Share, Northern Oil and Gas, Inc. tends to be beating the analyst estimates more than Celgene Corporation. so NOG is more profitable than CELG.
Technical Analysis of Celgene Corporation & Northern Oil and Gas, Inc.
Moving average convergence divergence (MACD) shows that Celgene Corporation (NASDAQ:CELG) is on a PRICE RELATIVITY trend While Northern Oil and Gas, Inc. (NYSE:NOG) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Celgene Corporation was in BEARISH territory and Northern Oil and Gas, Inc. was in BEARISH territory.
CELG’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While NOG’s candle is BEARISH with HIGH.
EPS Growth Rate: CELG’s 19.62% versus NOG’s 5%
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 Celgene Corporation (NASDAQ:CELG) is predicted at 19.62% while Northern Oil and Gas, Inc. (NYSE:NOG) stands at 5%. These numbers suggest that CELG 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 CELG stands at 1.5 while NOG is at 1.7 whereas the debt ratio of the prior is 6.2 while the debt ratio of the later is 0.
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 2.2 for CELG and 2 for NOG which means CELG has Hold rating whereas NOG 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 CELG is $111.65 which is 27.71% of its current price while NOG has price target of 5.17 which is 32.88% 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.
CELG currently has price to earning P/E ratio of 15.3 whereas NOG has 0 while the forward P/E ratio for the prior stands at 7.59 and for the later it depicts the value of 5.66.
The price to Book P/B for CELG is 16.85, Price to Sale is at 4.08 and for NOG these ratios stand at 0 and 4.93.