The shares of VICI Properties Inc. (NYSE:VICI) and Canadian Natural Resources Limited (NYSE:CNQ) were among the active stocks of the last trading sessions. VICI Properties Inc. (NYSE:VICI) soared to 0.23% closing at the price of $21.5 whereas the shares of Canadian Natural Resources Limited (NYSE:CNQ) declined -1.15% with the decrease of -0.33 points closing at the price of $28.31. VICI Properties Inc. has currently increase 18.26% in its stock over the period of 6-months while its rival Canadian Natural Resources Limited subtracted -19.71% 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 VICI Properties Inc. (NYSE:VICI) is 1.1% while the ROI of Canadian Natural Resources Limited (NYSE:CNQ) is 3.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, VICI’s EBITDA Margin is 21.26 whereas CNQ’s is 6.99.
Both the profitability ratios suggest a mixed sentiment for VICI Properties Inc. (NYSE:VICI) and Canadian Natural Resources Limited (NYSE:CNQ).
EPS & Surprise Factor
VICI Properties Inc. (NYSE:VICI) reported $0.38/share EPS for the previous quarter where analysts were predicting an EPS to be $0.37/share Thus beating the analyst Estimates with a Surprise Factor of 2.7 Percent. While, Canadian Natural Resources Limited (NYSE:CNQ) reported EPS of $0.36/share in the last quarter. The analysts projected EPS of $0.28/share depicting a Surprise of 28.6 Percent.
Taking a look at Earnings per Share, Canadian Natural Resources Limited tends to be beating the analyst estimates more than VICI Properties Inc.. so CNQ is more profitable than VICI.
Technical Analysis of VICI Properties Inc. & Canadian Natural Resources Limited
Moving average convergence divergence (MACD) shows that VICI Properties Inc. (NYSE:VICI) is on a PRICE RELATIVITY trend While Canadian Natural Resources Limited (NYSE:CNQ) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the VICI Properties Inc. was in BULLISH territory and Canadian Natural Resources Limited was in BEARISH territory.
VICI’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While CNQ’s candle is BEARISH with HIGH.
EPS Growth Rate: VICI’s 60.37% versus CNQ’s 16.17%
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 VICI Properties Inc. (NYSE:VICI) is predicted at 60.37% while Canadian Natural Resources Limited (NYSE:CNQ) stands at 16.17%. These numbers suggest that VICI 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 VICI stands at 9.2 while CNQ is at 1 whereas the debt ratio of the prior is 0.68 while the debt ratio of the later is 0.66.
The values of the both ratios suggest that VICI is more suitable investment when the liquidity and risk is the main concern.
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 2.5 for VICI and 1.9 for CNQ which means VICI has Hold rating whereas CNQ 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 VICI is $23.36 which is 7.96% of its current price while CNQ has price target of 40.74 which is 30.51% 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.
VICI currently has price to earning P/E ratio of 27.18 whereas CNQ has 17.14 while the forward P/E ratio for the prior stands at 12.67 and for the later it depicts the value of 9.82.
The price to Book P/B for VICI is 1.31, Price to Sale is at 12.61 and for CNQ these ratios stand at 1.4 and 2.16.