The shares of HCP, Inc. (NYSE:HCP) and Coeur Mining, Inc. (NYSE:CDE) were among the active stocks of the last trading sessions. HCP, Inc. (NYSE:HCP) soared to 0.43% closing at the price of $25.89 whereas the shares of Coeur Mining, Inc. (NYSE:CDE) declined -4.63% with the decrease of -0.27 points closing at the price of $5.56. HCP, Inc. has currently increase 18.33% in its stock over the period of 6-months while its rival Coeur Mining, Inc. subtracted -36.46% 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 HCP, Inc. (NYSE:HCP) is 2.6% while the ROI of Coeur Mining, Inc. (NYSE:CDE) is 1.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HCP’s EBITDA Margin is 20.55 whereas CDE’s is 6.66.
Both the profitability ratios suggest that HCP, Inc. (NYSE:HCP) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
HCP, Inc. (NYSE:HCP) reported $0.19/share EPS for the previous quarter where analysts were predicting an EPS to be $0.13/share Thus beating the analyst Estimates with a Surprise Factor of 46.2 Percent. While, Coeur Mining, Inc. (NYSE:CDE) reported EPS of $0.01/share in the last quarter. The analysts projected EPS of $-0.01/share depicting a Surprise of 200 Percent.
Taking a look at Earnings per Share, Coeur Mining, Inc. tends to be beating the analyst estimates more than HCP, Inc.. so CDE is more profitable than HCP.
Technical Analysis of HCP, Inc. & Coeur Mining, Inc.
Moving average convergence divergence (MACD) shows that HCP, Inc. (NYSE:HCP) is on a PRICE RELATIVITY trend While Coeur Mining, Inc. (NYSE:CDE) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the HCP, Inc. was in BULLISH territory and Coeur Mining, Inc. was in BULLISH territory.
HCP’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While CDE’s candle is BEARISH with HIGH.
EPS Growth Rate: HCP’s 2.5% versus CDE’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 HCP, Inc. (NYSE:HCP) is predicted at 2.5% while Coeur Mining, Inc. (NYSE:CDE) stands at 0%. These numbers suggest that HCP 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 HCP stands at 0 while CDE is at 2.2 whereas the debt ratio of the prior is 1.44 while the debt ratio of the later is 0.51.
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 2.7 for HCP and 2 for CDE which means HCP has Hold rating whereas CDE has Buy 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 HCP is $27 which is 4.11% of its current price while CDE has price target of 8.86 which is 37.25% 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.
HCP currently has price to earning P/E ratio of 154.11 whereas CDE has 154.44 while the forward P/E ratio for the prior stands at 47.77 and for the later it depicts the value of 32.14.
The price to Book P/B for HCP is 2.36, Price to Sale is at 6.62 and for CDE these ratios stand at 1.26 and 1.58.