Worth Comparing these two stocks: Cameco Corporation (CCJ), Crown Holdings, Inc. (CCK)

The shares of Cameco Corporation (NYSE:CCJ) and Crown Holdings, Inc. (NYSE:CCK) were among the active stocks of the last trading sessions. Cameco Corporation (NYSE:CCJ) declined to -0.85% closing at the price of $11.6 whereas the shares of Crown Holdings, Inc. (NYSE:CCK) declined -3.81% with the decrease of -1.8 points closing at the price of $45.5. Cameco Corporation has currently increase 16.7% in its stock over the period of 6-months while its rival Crown Holdings, Inc. subtracted -12.37% 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 Cameco Corporation (NYSE:CCJ) is -2.2% while the ROI of Crown Holdings, Inc. (NYSE:CCK) is 14.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CCJ’s EBITDA Margin is 12.98 whereas CCK’s is 10.73.

Both the profitability ratios suggest a mixed sentiment for Cameco Corporation (NYSE:CCJ) and Crown Holdings, Inc. (NYSE:CCK).

EPS & Surprise Factor

Cameco Corporation (NYSE:CCJ) reported $0.36/share EPS for the previous quarter where analysts were predicting an EPS to be $0.28/share Thus beating the analyst Estimates with a Surprise Factor of 28.6 Percent. While, Crown Holdings, Inc. (NYSE:CCK) reported EPS of $1.55/share in the last quarter. The analysts projected EPS of $1.56/share depicting a Surprise of -0.6 Percent.

Taking a look at Earnings per Share, Cameco Corporation tends to be beating the analyst estimates more than Crown Holdings, Inc.. so CCJ is more profitable than CCK.

Technical Analysis of Cameco Corporation & Crown Holdings, Inc.

Moving average convergence divergence (MACD) shows that Cameco Corporation (NYSE:CCJ) is on a PRICE RELATIVITY trend While Crown Holdings, Inc. (NYSE:CCK) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Cameco Corporation was in BULLISH territory and Crown Holdings, Inc. was in BEARISH territory.

CCJ’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While CCK’s candle is BEARISH with HIGH.

EPS Growth Rate: CCJ’s 9.79% versus CCK’s 15.06%

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 Cameco Corporation (NYSE:CCJ) is predicted at 9.79% while Crown Holdings, Inc. (NYSE:CCK) stands at 15.06%. These numbers suggest that CCK 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 CCJ stands at 6.2 while CCK is at 1.2 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 11.93.

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 CCJ and 2.4 for CCK which means CCJ has Hold rating whereas CCK 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 CCJ is $10.86 which is -6.81% of its current price while CCK has price target of 57.64 which is 21.06% 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.

CCJ currently has price to earning P/E ratio of 0 whereas CCK has 12.24 while the forward P/E ratio for the prior stands at 87.22 and for the later it depicts the value of 7.8.

The price to Book P/B for CCJ is 1.23, Price to Sale is at 2.9 and for CCK these ratios stand at 7.75 and 0.62.