The shares of Ctrip.com International, Ltd. (NASDAQ:CTRP) and Southern Company (The) (NYSE:SO) were among the active stocks of the last trading sessions. Ctrip.com International, Ltd. (NASDAQ:CTRP) soared to 4.81% closing at the price of $34.88 whereas the shares of Southern Company (The) (NYSE:SO) declined -0.29% with the decrease of -0.13 points closing at the price of $44.9. Ctrip.com International, Ltd. has currently decrease -15.3% in its stock over the period of 6-months while its rival Southern Company (The) subtracted -2.45% 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 Ctrip.com International, Ltd. (NASDAQ:CTRP) is 1% while the ROI of Southern Company (The) (NYSE:SO) is 2.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CTRP’s EBITDA Margin is 28.3 whereas SO’s is 12.08.
Both the profitability ratios suggest a mixed sentiment for Ctrip.com International, Ltd. (NASDAQ:CTRP) and Southern Company (The) (NYSE:SO).
EPS & Surprise Factor
Ctrip.com International, Ltd. (NASDAQ:CTRP) reported $0.27/share EPS for the previous quarter where analysts were predicting an EPS to be $0.2/share Thus beating the analyst Estimates with a Surprise Factor of 35 Percent. While, Southern Company (The) (NYSE:SO) reported EPS of $0.8/share in the last quarter. The analysts projected EPS of $0.69/share depicting a Surprise of 15.9 Percent.
Taking a look at Earnings per Share, Ctrip.com International, Ltd. tends to be beating the analyst estimates more than Southern Company (The). so CTRP is more profitable than SO.
Technical Analysis of Ctrip.com International, Ltd. & Southern Company (The)
Moving average convergence divergence (MACD) shows that Ctrip.com International, Ltd. (NASDAQ:CTRP) is on a PRICE RELATIVITY trend While Southern Company (The) (NYSE:SO) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Ctrip.com International, Ltd. was in BULLISH territory and Southern Company (The) was in BULLISH territory.
CTRP’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While SO’s candle is BEARISH with LOW.
EPS Growth Rate: CTRP’s 3.54% versus SO’s 1.37%
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 Ctrip.com International, Ltd. (NASDAQ:CTRP) is predicted at 3.54% while Southern Company (The) (NYSE:SO) stands at 1.37%. These numbers suggest that CTRP 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 CTRP stands at 1.3 while SO is at 0.8 whereas the debt ratio of the prior is 0.61 while the debt ratio of the later is 2.1.
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 1.9 for CTRP and 3.4 for SO which means CTRP has Buy rating whereas SO has Sell 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 CTRP is $47.6 which is 26.72% of its current price while SO has price target of 45.61 which is 1.56% 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.
CTRP currently has price to earning P/E ratio of 30.3 whereas SO has 21.88 while the forward P/E ratio for the prior stands at 23.38 and for the later it depicts the value of 14.9.
The price to Book P/B for CTRP is 1.49, Price to Sale is at 4.66 and for SO these ratios stand at 1.93 and 1.93.