Which stock Worth more Value? Brixmor Property Group Inc. (BRX) or BorgWarner Inc. (BWA)

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The shares of Brixmor Property Group Inc. (NYSE:BRX) and BorgWarner Inc. (NYSE:BWA) were among the active stocks of the last trading sessions. Brixmor Property Group Inc. (NYSE:BRX) declined to -1.94% closing at the price of $15.66 whereas the shares of BorgWarner Inc. (NYSE:BWA) declined -1.84% with the decrease of -0.71 points closing at the price of $37.87. Brixmor Property Group Inc. has currently increase 7.55% in its stock over the period of 6-months while its rival BorgWarner Inc. subtracted -28.36% 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 Brixmor Property Group Inc. (NYSE:BRX) is 5.3% while the ROI of BorgWarner Inc. (NYSE:BWA) is 13%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BRX’s EBITDA Margin is 12.42 whereas BWA’s is 6.16.

Both the profitability ratios suggest a mixed sentiment for Brixmor Property Group Inc. (NYSE:BRX) and BorgWarner Inc. (NYSE:BWA).

EPS & Surprise Factor

Brixmor Property Group Inc. (NYSE:BRX) reported $0.26/share EPS for the previous quarter where analysts were predicting an EPS to be $0.2/share Thus beating the analyst Estimates with a Surprise Factor of 30 Percent. While, BorgWarner Inc. (NYSE:BWA) reported EPS of $1.18/share in the last quarter. The analysts projected EPS of $1.1/share depicting a Surprise of 7.3 Percent.

Taking a look at Earnings per Share, Brixmor Property Group Inc. tends to be beating the analyst estimates more than BorgWarner Inc.. so BRX is more profitable than BWA.

Technical Analysis of Brixmor Property Group Inc. & BorgWarner Inc.

Moving average convergence divergence (MACD) shows that Brixmor Property Group Inc. (NYSE:BRX) is on a PRICE RELATIVITY trend While BorgWarner Inc. (NYSE:BWA) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Brixmor Property Group Inc. was in BEARISH territory and BorgWarner Inc. was in BEARISH territory.

BRX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While BWA’s candle is BEARISH with HIGH.

EPS Growth Rate: BRX’s -5.09% versus BWA’s 8%

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 Brixmor Property Group Inc. (NYSE:BRX) is predicted at -5.09% while BorgWarner Inc. (NYSE:BWA) stands at 8%. These numbers suggest that BWA 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 BRX stands at 0 while BWA is at 1.6 whereas the debt ratio of the prior is 1.92 while the debt ratio of the later is 0.55.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

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 2.4 for BRX and 2.2 for BWA which means BRX has Hold rating whereas BWA 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 BRX is $19.1 which is 18.01% of its current price while BWA has price target of 53.67 which is 29.44% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

BRX currently has price to earning P/E ratio of 16.18 whereas BWA has 9.85 while the forward P/E ratio for the prior stands at 19.75 and for the later it depicts the value of 8.

The price to Book P/B for BRX is 1.66, Price to Sale is at 3.77 and for BWA these ratios stand at 1.99 and 0.78.