The shares of Best Buy Co., Inc. (NYSE:BBY) and Brandywine Realty Trust (NYSE:BDN) were among the active stocks of the last trading sessions. Best Buy Co., Inc. (NYSE:BBY) declined to -1.6% closing at the price of $72.65 whereas the shares of Brandywine Realty Trust (NYSE:BDN) declined -1.58% with the decrease of -0.23 points closing at the price of $14.35. Best Buy Co., Inc. has currently increase 0.48% in its stock over the period of 6-months while its rival Brandywine Realty Trust subtracted -7.54% 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 Best Buy Co., Inc. (NYSE:BBY) is 26.3% while the ROI of Brandywine Realty Trust (NYSE:BDN) is 2.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BBY’s EBITDA Margin is 6.9 whereas BDN’s is 17.82.
Both the profitability ratios suggest a mixed sentiment for Best Buy Co., Inc. (NYSE:BBY) and Brandywine Realty Trust (NYSE:BDN).
EPS & Surprise Factor
Best Buy Co., Inc. (NYSE:BBY) reported $0.91/share EPS for the previous quarter where analysts were predicting an EPS to be $0.83/share Thus beating the analyst Estimates with a Surprise Factor of 9.6 Percent. While, Brandywine Realty Trust (NYSE:BDN) reported EPS of $0.08/share in the last quarter. The analysts projected EPS of $0.07/share depicting a Surprise of 14.3 Percent.
Taking a look at Earnings per Share, Brandywine Realty Trust tends to be beating the analyst estimates more than Best Buy Co., Inc.. so BDN is more profitable than BBY.
Technical Analysis of Best Buy Co., Inc. & Brandywine Realty Trust
Moving average convergence divergence (MACD) shows that Best Buy Co., Inc. (NYSE:BBY) is on a PRICE RELATIVITY trend While Brandywine Realty Trust (NYSE:BDN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Best Buy Co., Inc. was in BULLISH territory and Brandywine Realty Trust was in BEARISH territory.
BBY’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While BDN’s candle is BULLISH with HIGH.
EPS Growth Rate: BBY’s 14.38% versus BDN’s 5%
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 Best Buy Co., Inc. (NYSE:BBY) is predicted at 14.38% while Brandywine Realty Trust (NYSE:BDN) stands at 5%. These numbers suggest that BBY 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 BBY stands at 1.2 while BDN is at 0 whereas the debt ratio of the prior is 0.27 while the debt ratio of the later is 1.06.
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 2.9 for BBY and 2.5 for BDN which means BBY has Hold rating whereas BDN 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 BBY is $80.37 which is 9.61% of its current price while BDN has price target of 18.05 which is 20.5% 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.
BBY currently has price to earning P/E ratio of 16 whereas BDN has 17.17 while the forward P/E ratio for the prior stands at 13.25 and for the later it depicts the value of 43.88.
The price to Book P/B for BBY is 6.36, Price to Sale is at 0.45 and for BDN these ratios stand at 1.4 and 4.83.