The shares of Marriott International (NASDAQ:MAR) and Chico’s FAS, Inc. (NYSE:CHS) were among the active stocks of the last trading sessions. Marriott International (NASDAQ:MAR) declined to -2.26% closing at the price of $115.29 whereas the shares of Chico’s FAS, Inc. (NYSE:CHS) declined -3.17% with the decrease of -0.24 points closing at the price of $7.34. Marriott International has currently decrease -16.14% in its stock over the period of 6-months while its rival Chico’s FAS, Inc. subtracted -21.75% 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 Marriott International (NASDAQ:MAR) is 12.5% while the ROI of Chico’s FAS, Inc. (NYSE:CHS) is 12.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, MAR’s EBITDA Margin is 17.37 whereas CHS’s is 3.58.
Both the profitability ratios suggest a mixed sentiment for Marriott International (NASDAQ:MAR) and Chico’s FAS, Inc. (NYSE:CHS).
EPS & Surprise Factor
Marriott International (NASDAQ:MAR) reported $1.73/share EPS for the previous quarter where analysts were predicting an EPS to be $1.38/share Thus beating the analyst Estimates with a Surprise Factor of 25.4 Percent. While, Chico’s FAS, Inc. (NYSE:CHS) reported EPS of $0.13/share in the last quarter. The analysts projected EPS of $0.12/share depicting a Surprise of 8.3 Percent.
Taking a look at Earnings per Share, Marriott International tends to be beating the analyst estimates more than Chico’s FAS, Inc.. so MAR is more profitable than CHS.
Technical Analysis of Marriott International & Chico’s FAS, Inc.
Moving average convergence divergence (MACD) shows that Marriott International (NASDAQ:MAR) is on a PRICE RELATIVITY trend While Chico’s FAS, Inc. (NYSE:CHS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Marriott International was in BEARISH territory and Chico’s FAS, Inc. was in BEARISH territory.
MAR’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While CHS’s candle is BEARISH with MEDIUM.
EPS Growth Rate: MAR’s 17.42% versus CHS’s 15%
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 Marriott International (NASDAQ:MAR) is predicted at 17.42% while Chico’s FAS, Inc. (NYSE:CHS) stands at 15%. These numbers suggest that MAR 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 MAR stands at 0.5 while CHS is at 2 whereas the debt ratio of the prior is 3.16 while the debt ratio of the later is 0.1.
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 2.4 for MAR and 2.8 for CHS which means MAR has Hold rating whereas CHS 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 MAR is $145.9 which is 20.98% of its current price while CHS has price target of 9.09 which is 19.25% 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.
MAR currently has price to earning P/E ratio of 19.12 whereas CHS has 11.63 while the forward P/E ratio for the prior stands at 17.93 and for the later it depicts the value of 11.21.
The price to Book P/B for MAR is 14.34, Price to Sale is at 1.78 and for CHS these ratios stand at 1.43 and 0.42.