The shares of Government Properties Income Trust (NASDAQ:GOV) and DENTSPLY SIRONA Inc. (NASDAQ:XRAY) were among the active stocks of the last trading sessions. Government Properties Income Trust (NASDAQ:GOV) declined to -3.69% closing at the price of $10.19 whereas the shares of DENTSPLY SIRONA Inc. (NASDAQ:XRAY) declined -0.61% with the decrease of -0.22 points closing at the price of $35.68. Government Properties Income Trust has currently decrease -16.82% in its stock over the period of 6-months while its rival DENTSPLY SIRONA Inc. subtracted -27.18% 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 Government Properties Income Trust (NASDAQ:GOV) is 1.5% while the ROI of DENTSPLY SIRONA Inc. (NASDAQ:XRAY) is -18%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, GOV’s EBITDA Margin is 14.35 whereas XRAY’s is 11.74.
Both the profitability ratios suggest that Government Properties Income Trust (NASDAQ:GOV) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Government Properties Income Trust (NASDAQ:GOV) reported $0.3/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.07/share Thus beating the analyst Estimates with a Surprise Factor of 528.6 Percent. While, DENTSPLY SIRONA Inc. (NASDAQ:XRAY) reported EPS of $0.6/share in the last quarter. The analysts projected EPS of $0.59/share depicting a Surprise of 1.7 Percent.
Taking a look at Earnings per Share, Government Properties Income Trust tends to be beating the analyst estimates more than DENTSPLY SIRONA Inc.. so GOV is more profitable than XRAY.
Technical Analysis of Government Properties Income Trust & DENTSPLY SIRONA Inc.
Moving average convergence divergence (MACD) shows that Government Properties Income Trust (NASDAQ:GOV) is on a PRICE RELATIVITY trend While DENTSPLY SIRONA Inc. (NASDAQ:XRAY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Government Properties Income Trust was in BEARISH territory and DENTSPLY SIRONA Inc. was in BEARISH territory.
GOV’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While XRAY’s candle is BEARISH with MEDIUM.
EPS Growth Rate: GOV’s 5% versus XRAY’s -1.49%
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 Government Properties Income Trust (NASDAQ:GOV) is predicted at 5% while DENTSPLY SIRONA Inc. (NASDAQ:XRAY) stands at -1.49%. These numbers suggest that GOV 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 GOV stands at 0 while XRAY is at 1.7 whereas the debt ratio of the prior is 1.67 while the debt ratio of the later is 0.35.
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 3.6 for GOV and 2.6 for XRAY which means GOV has Sell rating whereas XRAY 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 GOV is $13.79 which is 26.11% of its current price while XRAY has price target of 47 which is 24.09% 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.
GOV currently has price to earning P/E ratio of 35.51 whereas XRAY has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 15.29.
The price to Book P/B for GOV is 0.79, Price to Sale is at 2.56 and for XRAY these ratios stand at 1.57 and 1.93.