Two Worthy Stocks for investors: WEC Energy Group, Inc. (WEC), Amgen Inc. (AMGN)

The shares of WEC Energy Group, Inc. (NYSE:WEC) and Amgen Inc. (NASDAQ:AMGN) were among the active stocks of the last trading sessions. WEC Energy Group, Inc. (NYSE:WEC) soared to 0.01% closing at the price of $69.27 whereas the shares of Amgen Inc. (NASDAQ:AMGN) declined -0.02% with the decrease of -0.05 points closing at the price of $202.72. WEC Energy Group, Inc. has currently increase 11.46% in its stock over the period of 6-months while its rival Amgen Inc. added 18.16% 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 WEC Energy Group, Inc. (NYSE:WEC) is 5.8% while the ROI of Amgen Inc. (NASDAQ:AMGN) is 14%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, WEC’s EBITDA Margin is 13.06 whereas AMGN’s is 10.9.

Both the profitability ratios suggest a mixed sentiment for WEC Energy Group, Inc. (NYSE:WEC) and Amgen Inc. (NASDAQ:AMGN).

EPS & Surprise Factor

WEC Energy Group, Inc. (NYSE:WEC) reported $0.73/share EPS for the previous quarter where analysts were predicting an EPS to be $0.67/share Thus beating the analyst Estimates with a Surprise Factor of 9 Percent. While, Amgen Inc. (NASDAQ:AMGN) reported EPS of $3.83/share in the last quarter. The analysts projected EPS of $3.54/share depicting a Surprise of 8.2 Percent.

Taking a look at Earnings per Share, WEC Energy Group, Inc. tends to be beating the analyst estimates more than Amgen Inc.. so WEC is more profitable than AMGN.

Technical Analysis of WEC Energy Group, Inc. & Amgen Inc.

Moving average convergence divergence (MACD) shows that WEC Energy Group, Inc. (NYSE:WEC) is on a PRICE RELATIVITY trend While Amgen Inc. (NASDAQ:AMGN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the WEC Energy Group, Inc. was in BULLISH territory and Amgen Inc. was in BEARISH territory.

WEC’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While AMGN’s candle is BEARISH with HIGH.

EPS Growth Rate: WEC’s 4.54% versus AMGN’s 5.38%

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 WEC Energy Group, Inc. (NYSE:WEC) is predicted at 4.54% while Amgen Inc. (NASDAQ:AMGN) stands at 5.38%. These numbers suggest that AMGN 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 WEC stands at 0.6 while AMGN is at 3.4 whereas the debt ratio of the prior is 1.12 while the debt ratio of the later is 2.31.

The values of the both ratios suggest that AMGN is more suitable investment when the liquidity and risk is the main concern.

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 WEC and 2.3 for AMGN which means WEC has Hold rating whereas AMGN 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 WEC is $68.5 which is -1.12% of its current price while AMGN has price target of 205.1 which is 1.16% 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.

WEC currently has price to earning P/E ratio of 20.66 whereas AMGN has 16.87 while the forward P/E ratio for the prior stands at 19.75 and for the later it depicts the value of 13.93.

The price to Book P/B for WEC is 2.25, Price to Sale is at 2.85 and for AMGN these ratios stand at 8.92 and 5.74.