The shares of Winnebago Industries, Inc. (NYSE:WGO) and Enbridge Energy, L.P. (NYSE:EEP) were among the active stocks of the last trading sessions. Winnebago Industries, Inc. (NYSE:WGO) declined to -12.29% closing at the price of $29.12 whereas the shares of Enbridge Energy, L.P. (NYSE:EEP) declined -0.91% with the decrease of -0.1 points closing at the price of $10.93. Winnebago Industries, Inc. has currently decrease -17.62% in its stock over the period of 6-months while its rival Enbridge Energy, L.P. added 4.59% 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 Winnebago Industries, Inc. (NYSE:WGO) is 12.3% while the ROI of Enbridge Energy, L.P. (NYSE:EEP) is 12.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, WGO’s EBITDA Margin is 7.35 whereas EEP’s is 11.78.
Both the profitability ratios suggest that Enbridge Energy, L.P. (NYSE:EEP) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Winnebago Industries, Inc. (NYSE:WGO) reported $0.94/share EPS for the previous quarter where analysts were predicting an EPS to be $0.91/share Thus beating the analyst Estimates with a Surprise Factor of 3.3 Percent. While, Enbridge Energy, L.P. (NYSE:EEP) reported EPS of $0.15/share in the last quarter. The analysts projected EPS of $0.12/share depicting a Surprise of 25 Percent.
Taking a look at Earnings per Share, Enbridge Energy, L.P. tends to be beating the analyst estimates more than Winnebago Industries, Inc.. so EEP is more profitable than WGO.
Technical Analysis of Winnebago Industries, Inc. & Enbridge Energy, L.P.
Moving average convergence divergence (MACD) shows that Winnebago Industries, Inc. (NYSE:WGO) is on a PRICE RELATIVITY trend While Enbridge Energy, L.P. (NYSE:EEP) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Winnebago Industries, Inc. was in BEARISH territory and Enbridge Energy, L.P. was in BEARISH territory.
WGO’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While EEP’s candle is BULLISH with MEDIUM.
EPS Growth Rate: WGO’s 15% versus EEP’s 14.2%
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 Winnebago Industries, Inc. (NYSE:WGO) is predicted at 15% while Enbridge Energy, L.P. (NYSE:EEP) stands at 14.2%. These numbers suggest that WGO 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 WGO stands at 2 while EEP is at 0.3 whereas the debt ratio of the prior is 0.5 while the debt ratio of the later is 5.07.
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 2.1 for WGO and 3.1 for EEP which means WGO has Hold rating whereas EEP has Sell 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 WGO is $59.6 which is 51.14% of its current price while EEP has price target of 11.93 which is 8.38% 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.
WGO currently has price to earning P/E ratio of 9.34 whereas EEP has 18.78 while the forward P/E ratio for the prior stands at 7.33 and for the later it depicts the value of 14.14.
The price to Book P/B for WGO is 1.82, Price to Sale is at 0.46 and for EEP these ratios stand at 3.17 and 1.51.