The shares of DISH Network Corporation (NASDAQ:DISH) and Superior Energy Services, Inc. (NYSE:SPN) were among the active stocks of the last trading sessions. DISH Network Corporation (NASDAQ:DISH) declined to -0.12% closing at the price of $34.4 whereas the shares of Superior Energy Services, Inc. (NYSE:SPN) declined -6.33% with the decrease of -0.61 points closing at the price of $9.02. DISH Network Corporation has currently decrease -7.6% in its stock over the period of 6-months while its rival Superior Energy Services, Inc. subtracted -8.7% 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 DISH Network Corporation (NASDAQ:DISH) is 3.8% while the ROI of Superior Energy Services, Inc. (NYSE:SPN) is -6.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DISH’s EBITDA Margin is 11.02 whereas SPN’s is 9.02.
Both the profitability ratios suggest that DISH Network Corporation (NASDAQ:DISH) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
DISH Network Corporation (NASDAQ:DISH) reported $0.83/share EPS for the previous quarter where analysts were predicting an EPS to be $0.71/share Thus beating the analyst Estimates with a Surprise Factor of 16.9 Percent. While, Superior Energy Services, Inc. (NYSE:SPN) reported EPS of $-0.16/share in the last quarter. The analysts projected EPS of $-0.22/share depicting a Surprise of 27.3 Percent.
Taking a look at Earnings per Share, Superior Energy Services, Inc. tends to be beating the analyst estimates more than DISH Network Corporation. so SPN is more profitable than DISH.
Technical Analysis of DISH Network Corporation & Superior Energy Services, Inc.
Moving average convergence divergence (MACD) shows that DISH Network Corporation (NASDAQ:DISH) is on a PRICE RELATIVITY trend While Superior Energy Services, Inc. (NYSE:SPN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the DISH Network Corporation was in BULLISH territory and Superior Energy Services, Inc. was in BEARISH territory.
DISH’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While SPN’s candle is BEARISH with HIGH.
EPS Growth Rate: DISH’s 0% versus SPN’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 DISH Network Corporation (NASDAQ:DISH) is predicted at 0% while Superior Energy Services, Inc. (NYSE:SPN) stands at 0%. These numbers suggest that SPN 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 DISH stands at 0.8 while SPN is at 2 whereas the debt ratio of the prior is 1.94 while the debt ratio of the later is 0.
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 2.5 for DISH and 2.5 for SPN which means DISH has Hold rating whereas SPN 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 DISH is $51.45 which is 33.14% of its current price while SPN has price target of 11.57 which is 22.04% 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.
DISH currently has price to earning P/E ratio of 14.02 whereas SPN has 0 while the forward P/E ratio for the prior stands at 14.38 and for the later it depicts the value of 0.
The price to Book P/B for DISH is 2.06, Price to Sale is at 1.11 and for SPN these ratios stand at 1.32 and 0.68.