The shares of DISH Network Corporation (NASDAQ:DISH) and Best Buy Co., Inc. (NYSE:BBY) were among the active stocks of the last trading sessions. DISH Network Corporation (NASDAQ:DISH) declined to -3.57% closing at the price of $31.87 whereas the shares of Best Buy Co., Inc. (NYSE:BBY) declined -0.04% with the decrease of -0.03 points closing at the price of $70.75. DISH Network Corporation has currently decrease -17.29% in its stock over the period of 6-months while its rival Best Buy Co., Inc. subtracted -0.53% 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 DISH Network Corporation (NASDAQ:DISH) is 3.8% while the ROI of Best Buy Co., Inc. (NYSE:BBY) is 26.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DISH’s EBITDA Margin is 11 whereas BBY’s is 6.77.
Both the profitability ratios suggest a mixed sentiment for DISH Network Corporation (NASDAQ:DISH) and Best Buy Co., Inc. (NYSE:BBY).
EPS & Surprise Factor
DISH Network Corporation (NASDAQ:DISH) reported $0.83/share EPS for the previous quarter where analysts were predicting an EPS to be $0.71/share Thus beating the analyst Estimates with a Surprise Factor of 16.9 Percent. While, Best Buy Co., Inc. (NYSE:BBY) reported EPS of $0.91/share in the last quarter. The analysts projected EPS of $0.83/share depicting a Surprise of 9.6 Percent.
Taking a look at Earnings per Share, DISH Network Corporation tends to be beating the analyst estimates more than Best Buy Co., Inc.. so DISH is more profitable than BBY.
Technical Analysis of DISH Network Corporation & Best Buy Co., Inc.
Moving average convergence divergence (MACD) shows that DISH Network Corporation (NASDAQ:DISH) is on a PRICE RELATIVITY trend While Best Buy Co., Inc. (NYSE:BBY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the DISH Network Corporation was in BEARISH territory and Best Buy Co., Inc. was in BEARISH territory.
DISH’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While BBY’s candle is BEARISH with HIGH.
EPS Growth Rate: DISH’s 0% versus BBY’s 14.38%
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 DISH Network Corporation (NASDAQ:DISH) is predicted at 0% while Best Buy Co., Inc. (NYSE:BBY) stands at 14.38%. These numbers suggest that BBY 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 DISH stands at 0.8 while BBY is at 1.2 whereas the debt ratio of the prior is 1.94 while the debt ratio of the later is 0.27.
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 DISH and 2.9 for BBY which means DISH has Hold rating whereas BBY 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 DISH is $51.45 which is 38.06% of its current price while BBY has price target of 80.26 which is 11.85% 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.
DISH currently has price to earning P/E ratio of 12.99 whereas BBY has 15.58 while the forward P/E ratio for the prior stands at 13.58 and for the later it depicts the value of 12.9.
The price to Book P/B for DISH is 1.91, Price to Sale is at 1.13 and for BBY these ratios stand at 6.2 and 0.45.