The shares of Noble Energy Inc. (NYSE:NBL) and TRI Pointe Group, Inc. (NYSE:TPH) were among the active stocks of the last trading sessions. Noble Energy Inc. (NYSE:NBL) soared to 0.42% closing at the price of $26.34 whereas the shares of TRI Pointe Group, Inc. (NYSE:TPH) soared 1.94% with the increase of 0.24 points closing at the price of $12.58. Noble Energy Inc. has currently decrease -19.87% in its stock over the period of 6-months while its rival TRI Pointe Group, Inc. subtracted -28.56% 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 Noble Energy Inc. (NYSE:NBL) is -8.5% while the ROI of TRI Pointe Group, Inc. (NYSE:TPH) is 6.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NBL’s EBITDA Margin is 8.7 whereas TPH’s is 6.43.
Both the profitability ratios suggest a mixed sentiment for Noble Energy Inc. (NYSE:NBL) and TRI Pointe Group, Inc. (NYSE:TPH).
EPS & Surprise Factor
Noble Energy Inc. (NYSE:NBL) reported $0.27/share EPS for the previous quarter where analysts were predicting an EPS to be $0.18/share Thus beating the analyst Estimates with a Surprise Factor of 50 Percent. While, TRI Pointe Group, Inc. (NYSE:TPH) reported EPS of $0.43/share in the last quarter. The analysts projected EPS of $0.4/share depicting a Surprise of 7.5 Percent.
Taking a look at Earnings per Share, Noble Energy Inc. tends to be beating the analyst estimates more than TRI Pointe Group, Inc.. so NBL is more profitable than TPH.
Technical Analysis of Noble Energy Inc. & TRI Pointe Group, Inc.
Moving average convergence divergence (MACD) shows that Noble Energy Inc. (NYSE:NBL) is on a PRICE RELATIVITY trend While TRI Pointe Group, Inc. (NYSE:TPH) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Noble Energy Inc. was in BEARISH territory and TRI Pointe Group, Inc. was in BULLISH territory.
NBL’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While TPH’s candle is BULLISH with HIGH.
EPS Growth Rate: NBL’s 0% versus TPH’s 11.38%
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 Noble Energy Inc. (NYSE:NBL) is predicted at 0% while TRI Pointe Group, Inc. (NYSE:TPH) stands at 11.38%. These numbers suggest that TPH 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 NBL stands at 0.8 while TPH is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.
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 2.3 for NBL and 2.7 for TPH which means NBL has Hold rating whereas TPH 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 NBL is $42.92 which is 38.63% of its current price while TPH has price target of 12.89 which is 2.4% 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.
NBL currently has price to earning P/E ratio of 164.63 whereas TPH has 7.16 while the forward P/E ratio for the prior stands at 18.45 and for the later it depicts the value of 7.68.
The price to Book P/B for NBL is 1.23, Price to Sale is at 2.71 and for TPH these ratios stand at 0.95 and 0.57.