The shares of Apache Corporation (NYSE:APA) and VEON Ltd. (NASDAQ:VEON) were among the active stocks of the last trading sessions. Apache Corporation (NYSE:APA) declined to -3.81% closing at the price of $44.63 whereas the shares of VEON Ltd. (NASDAQ:VEON) declined -1.07% with the decrease of -0.03 points closing at the price of $2.77. Apache Corporation has currently increase 9.87% in its stock over the period of 6-months while its rival VEON Ltd. added 22.03% 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 Apache Corporation (NYSE:APA) is 10.2% while the ROI of VEON Ltd. (NASDAQ:VEON) is 4.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, APA’s EBITDA Margin is 6.75 whereas VEON’s is 4.14.
Both the profitability ratios suggest that Apache Corporation (NYSE:APA) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Apache Corporation (NYSE:APA) reported $0.5/share EPS for the previous quarter where analysts were predicting an EPS to be $0.39/share Thus beating the analyst Estimates with a Surprise Factor of 28.2 Percent. While, VEON Ltd. (NASDAQ:VEON) reported EPS of $0.01/share in the last quarter. The analysts projected EPS of $0.05/share depicting a Surprise of -80 Percent.
Taking a look at Earnings per Share, Apache Corporation tends to be beating the analyst estimates more than VEON Ltd.. so APA is more profitable than VEON.
Technical Analysis of Apache Corporation & VEON Ltd.
Moving average convergence divergence (MACD) shows that Apache Corporation (NYSE:APA) is on a PRICE RELATIVITY trend While VEON Ltd. (NASDAQ:VEON) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Apache Corporation was in BEARISH territory and VEON Ltd. was in BEARISH territory.
APA’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While VEON’s candle is BEARISH with LOW.
EPS Growth Rate: APA’s 0% versus VEON’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 Apache Corporation (NYSE:APA) is predicted at 0% while VEON Ltd. (NASDAQ:VEON) stands at 0%. These numbers suggest that VEON 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 APA stands at 1.4 while VEON is at 0.6 whereas the debt ratio of the prior is 1.09 while the debt ratio of the later is 2.98.
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 3 for APA and 2.1 for VEON which means APA has Hold rating whereas VEON 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 APA is $49.59 which is 10% of its current price while VEON has price target of 4.25 which is 34.82% 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.
APA currently has price to earning P/E ratio of 17.58 whereas VEON has 0 while the forward P/E ratio for the prior stands at 24.32 and for the later it depicts the value of 12.1.
The price to Book P/B for APA is 2.23, Price to Sale is at 2.65 and for VEON these ratios stand at 1.36 and 0.53.