The shares of Exelixis, Inc. (NASDAQ:EXEL) and Kimco Realty Corporation (NYSE:KIM) were among the active stocks of the last trading sessions. Exelixis, Inc. (NASDAQ:EXEL) soared to 7.79% closing at the price of $14.95 whereas the shares of Kimco Realty Corporation (NYSE:KIM) declined -1.43% with the decrease of -0.23 points closing at the price of $15.86. Exelixis, Inc. has currently decrease -33.41% in its stock over the period of 6-months while its rival Kimco Realty Corporation added 8.11% 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 Exelixis, Inc. (NASDAQ:EXEL) is 55.4% while the ROI of Kimco Realty Corporation (NYSE:KIM) is 3.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, EXEL’s EBITDA Margin is 12.17 whereas KIM’s is 14.81.
Both the profitability ratios suggest a mixed sentiment for Exelixis, Inc. (NASDAQ:EXEL) and Kimco Realty Corporation (NYSE:KIM).
EPS & Surprise Factor
Exelixis, Inc. (NASDAQ:EXEL) reported $0.41/share EPS for the previous quarter where analysts were predicting an EPS to be $0.19/share Thus beating the analyst Estimates with a Surprise Factor of 115.8 Percent. While, Kimco Realty Corporation (NYSE:KIM) reported EPS of $0.19/share in the last quarter. The analysts projected EPS of $0.13/share depicting a Surprise of 46.2 Percent.
Taking a look at Earnings per Share, Exelixis, Inc. tends to be beating the analyst estimates more than Kimco Realty Corporation. so EXEL is more profitable than KIM.
Technical Analysis of Exelixis, Inc. & Kimco Realty Corporation
Moving average convergence divergence (MACD) shows that Exelixis, Inc. (NASDAQ:EXEL) is on a PRICE RELATIVITY trend While Kimco Realty Corporation (NYSE:KIM) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Exelixis, Inc. was in BEARISH territory and Kimco Realty Corporation was in BULLISH territory.
EXEL’s current statistics gauge that the stock candle is BULLISH with MEDIUM volatility. While KIM’s candle is BEARISH with HIGH.
EPS Growth Rate: EXEL’s 23% versus KIM’s 4.6%
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 Exelixis, Inc. (NASDAQ:EXEL) is predicted at 23% while Kimco Realty Corporation (NYSE:KIM) stands at 4.6%. These numbers suggest that EXEL 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 EXEL stands at 6.9 while KIM is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.94.
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 2.1 for EXEL and 2.8 for KIM which means EXEL has Hold rating whereas KIM 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 EXEL is $29.22 which is 48.84% of its current price while KIM has price target of 17.08 which is 7.14% 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.
EXEL currently has price to earning P/E ratio of 14.49 whereas KIM has 29.53 while the forward P/E ratio for the prior stands at 13.3 and for the later it depicts the value of 25.34.
The price to Book P/B for EXEL is 5.73, Price to Sale is at 6.76 and for KIM these ratios stand at 1.23 and 5.69.