Are you willing to Put your Money on these stocks? Western Union Company (The) (WU), Suncor Energy Inc. (SU)

The shares of Western Union Company (The) (NYSE:WU) and Suncor Energy Inc. (NYSE:SU) were among the active stocks of the last trading sessions. Western Union Company (The) (NYSE:WU) soared to 0.17% closing at the price of $18.07 whereas the shares of Suncor Energy Inc. (NYSE:SU) soared 1.05% with the increase of 0.35 points closing at the price of $33.66. Western Union Company (The) has currently decrease -7.85% in its stock over the period of 6-months while its rival Suncor Energy Inc. subtracted -12.32% 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 Western Union Company (The) (NYSE:WU) is 15.6% while the ROI of Suncor Energy Inc. (NYSE:SU) is 5.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, WU’s EBITDA Margin is 7.73 whereas SU’s is 7.38.

Both the profitability ratios suggest that Western Union Company (The) (NYSE:WU) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Western Union Company (The) (NYSE:WU) reported $0.52/share EPS for the previous quarter where analysts were predicting an EPS to be $0.48/share Thus beating the analyst Estimates with a Surprise Factor of 8.3 Percent. While, Suncor Energy Inc. (NYSE:SU) reported EPS of $0.62/share in the last quarter. The analysts projected EPS of $0.56/share depicting a Surprise of 10.7 Percent.

Taking a look at Earnings per Share, Suncor Energy Inc. tends to be beating the analyst estimates more than Western Union Company (The). so SU is more profitable than WU.

Technical Analysis of Western Union Company (The) & Suncor Energy Inc.

Moving average convergence divergence (MACD) shows that Western Union Company (The) (NYSE:WU) is on a PRICE RELATIVITY trend While Suncor Energy Inc. (NYSE:SU) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Western Union Company (The) was in BEARISH territory and Suncor Energy Inc. was in BEARISH territory.

WU’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While SU’s candle is BEARISH with MEDIUM.

EPS Growth Rate: WU’s 3.75% versus SU’s 11.84%

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 Western Union Company (The) (NYSE:WU) is predicted at 3.75% while Suncor Energy Inc. (NYSE:SU) stands at 11.84%. These numbers suggest that SU 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 WU stands at 0 while SU is at 0.9 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.4.

The values of the both ratios suggest that SU is more suitable investment when the liquidity and risk is the main concern.

Analyst Recommendations

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 3.2 for WU and 2 for SU which means WU has Sell rating whereas SU has Buy 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 WU is $20.63 which is 12.41% of its current price while SU has price target of 42.83 which is 21.41% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

WU currently has price to earning P/E ratio of 22.48 whereas SU has 16.39 while the forward P/E ratio for the prior stands at 9.41 and for the later it depicts the value of 10.85.

The price to Book P/B for WU is 0, Price to Sale is at 1.46 and for SU these ratios stand at 1.58 and 1.99.