The shares of Gulfport Energy Corporation (NASDAQ:GPOR) and Xcel Energy Inc. (NASDAQ:XEL) were among the active stocks of the last trading sessions. Gulfport Energy Corporation (NASDAQ:GPOR) declined to -3.37% closing at the price of $10.61 whereas the shares of Xcel Energy Inc. (NASDAQ:XEL) soared 0.21% with the increase of 0.1 points closing at the price of $48.34. Gulfport Energy Corporation has currently increase 20.71% in its stock over the period of 6-months while its rival Xcel Energy Inc. added 7.18% 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 Gulfport Energy Corporation (NASDAQ:GPOR) is 10.6% while the ROI of Xcel Energy Inc. (NASDAQ:XEL) is 6.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, GPOR’s EBITDA Margin is 4.87 whereas XEL’s is 10.79.
Both the profitability ratios suggest a mixed sentiment for Gulfport Energy Corporation (NASDAQ:GPOR) and Xcel Energy Inc. (NASDAQ:XEL).
EPS & Surprise Factor
Gulfport Energy Corporation (NASDAQ:GPOR) reported $0.33/share EPS for the previous quarter where analysts were predicting an EPS to be $0.32/share Thus beating the analyst Estimates with a Surprise Factor of 3.1 Percent. While, Xcel Energy Inc. (NASDAQ:XEL) reported EPS of $0.52/share in the last quarter. The analysts projected EPS of $0.47/share depicting a Surprise of 10.6 Percent.
Taking a look at Earnings per Share, Xcel Energy Inc. tends to be beating the analyst estimates more than Gulfport Energy Corporation. so XEL is more profitable than GPOR.
Technical Analysis of Gulfport Energy Corporation & Xcel Energy Inc.
Moving average convergence divergence (MACD) shows that Gulfport Energy Corporation (NASDAQ:GPOR) is on a PRICE RELATIVITY trend While Xcel Energy Inc. (NASDAQ:XEL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Gulfport Energy Corporation was in BEARISH territory and Xcel Energy Inc. was in BEARISH territory.
GPOR’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While XEL’s candle is BEARISH with HIGH.
EPS Growth Rate: GPOR’s 8.01% versus XEL’s 5.95%
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 Gulfport Energy Corporation (NASDAQ:GPOR) is predicted at 8.01% while Xcel Energy Inc. (NASDAQ:XEL) stands at 5.95%. These numbers suggest that GPOR 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 GPOR stands at 0.5 while XEL is at 0.7 whereas the debt ratio of the prior is 0.66 while the debt ratio of the later is 1.45.
The values of the both ratios suggest that XEL 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 2.1 for GPOR and 2.5 for XEL which means GPOR has Hold rating whereas XEL 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 GPOR is $15.23 which is 30.33% of its current price while XEL has price target of 49.38 which is 2.11% 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.
GPOR currently has price to earning P/E ratio of 5.08 whereas XEL has 22.25 while the forward P/E ratio for the prior stands at 7.43 and for the later it depicts the value of 18.62.
The price to Book P/B for GPOR is 0.58, Price to Sale is at 1.47 and for XEL these ratios stand at 2.11 and 2.15.