The shares of Mosaic Company (The) (NYSE:MOS) and PBF Energy Inc. (NYSE:PBF) were among the active stocks of the last trading sessions. Mosaic Company (The) (NYSE:MOS) declined to -0.61% closing at the price of $32.85 whereas the shares of PBF Energy Inc. (NYSE:PBF) declined -2.12% with the decrease of -1.04 points closing at the price of $47.99. Mosaic Company (The) has currently increase 27.92% in its stock over the period of 6-months while its rival PBF Energy Inc. added 25.66% 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 Mosaic Company (The) (NYSE:MOS) is 2.9% while the ROI of PBF Energy Inc. (NYSE:PBF) is 8.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, MOS’s EBITDA Margin is 11.37 whereas PBF’s is 9.21.
Both the profitability ratios suggest a mixed sentiment for Mosaic Company (The) (NYSE:MOS) and PBF Energy Inc. (NYSE:PBF).
EPS & Surprise Factor
Mosaic Company (The) (NYSE:MOS) reported $0.4/share EPS for the previous quarter where analysts were predicting an EPS to be $0.38/share Thus beating the analyst Estimates with a Surprise Factor of 5.3 Percent. While, PBF Energy Inc. (NYSE:PBF) reported EPS of $1.38/share in the last quarter. The analysts projected EPS of $1.36/share depicting a Surprise of 1.5 Percent.
Taking a look at Earnings per Share, Mosaic Company (The) tends to be beating the analyst estimates more than PBF Energy Inc.. so MOS is more profitable than PBF.
Technical Analysis of Mosaic Company (The) & PBF Energy Inc.
Moving average convergence divergence (MACD) shows that Mosaic Company (The) (NYSE:MOS) is on a PRICE RELATIVITY trend While PBF Energy Inc. (NYSE:PBF) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Mosaic Company (The) was in BEARISH territory and PBF Energy Inc. was in BEARISH territory.
MOS’s current statistics gauge that the stock candle is BULLISH with LOW volatility. While PBF’s candle is BEARISH with MEDIUM.
EPS Growth Rate: MOS’s 29.6% versus PBF’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 Mosaic Company (The) (NYSE:MOS) is predicted at 29.6% while PBF Energy Inc. (NYSE:PBF) stands at 0%. These numbers suggest that MOS 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 MOS stands at 1.6 while PBF is at 1.7 whereas the debt ratio of the prior is 0.49 while the debt ratio of the later is 0.85.
The values of the both ratios suggest that PBF 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 2.2 for MOS and 2.6 for PBF which means MOS has Hold rating whereas PBF 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 MOS is $35.72 which is 8.03% of its current price while PBF has price target of 55.64 which is 13.75% 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.
MOS currently has price to earning P/E ratio of 32.62 whereas PBF has 6.58 while the forward P/E ratio for the prior stands at 14.58 and for the later it depicts the value of 9.06.
The price to Book P/B for MOS is 1.24, Price to Sale is at 1.53 and for PBF these ratios stand at 2.08 and 0.22.