Performance Comparison of NXP Semiconductors N.V. (NXPI) and ENSCO plc (ESV)

The shares of NXP Semiconductors N.V. (NASDAQ:NXPI) and ENSCO plc (NYSE:ESV) were among the active stocks of the last trading sessions. NXP Semiconductors N.V. (NASDAQ:NXPI) declined to -0.01% closing at the price of $84.08 whereas the shares of ENSCO plc (NYSE:ESV) soared 1.27% with the increase of 0.09 points closing at the price of $7.16. NXP Semiconductors N.V. has currently decrease -14.6% in its stock over the period of 6-months while its rival ENSCO plc added 21.15% 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 NXP Semiconductors N.V. (NASDAQ:NXPI) is 9% while the ROI of ENSCO plc (NYSE:ESV) is -1.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NXPI’s EBITDA Margin is 7.9 whereas ESV’s is 21.97.

Both the profitability ratios suggest a mixed sentiment for NXP Semiconductors N.V. (NASDAQ:NXPI) and ENSCO plc (NYSE:ESV).

EPS & Surprise Factor

NXP Semiconductors N.V. (NASDAQ:NXPI) reported $2.01/share EPS for the previous quarter where analysts were predicting an EPS to be $1.9/share Thus beating the analyst Estimates with a Surprise Factor of 5.8 Percent. While, ENSCO plc (NYSE:ESV) reported EPS of $-0.33/share in the last quarter. The analysts projected EPS of $-0.34/share depicting a Surprise of 2.9 Percent.

Taking a look at Earnings per Share, NXP Semiconductors N.V. tends to be beating the analyst estimates more than ENSCO plc. so NXPI is more profitable than ESV.

Technical Analysis of NXP Semiconductors N.V. & ENSCO plc

Moving average convergence divergence (MACD) shows that NXP Semiconductors N.V. (NASDAQ:NXPI) is on a PRICE RELATIVITY trend While ENSCO plc (NYSE:ESV) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the NXP Semiconductors N.V. was in BULLISH territory and ENSCO plc was in BEARISH territory.

NXPI’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While ESV’s candle is BULLISH with HIGH.

EPS Growth Rate: NXPI’s 13.78% versus ESV’s 0%

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 NXP Semiconductors N.V. (NASDAQ:NXPI) is predicted at 13.78% while ENSCO plc (NYSE:ESV) stands at 0%. These numbers suggest that NXPI 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 NXPI stands at 1.2 while ESV is at 2.6 whereas the debt ratio of the prior is 0.6 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.

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 2.3 for NXPI and 2.4 for ESV which means NXPI has Hold rating whereas ESV 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 NXPI is $101.94 which is 17.52% of its current price while ESV has price target of 8.69 which is 17.61% 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.

NXPI currently has price to earning P/E ratio of 14.08 whereas ESV has 0 while the forward P/E ratio for the prior stands at 9.72 and for the later it depicts the value of 0.

The price to Book P/B for NXPI is 2.55, Price to Sale is at 3.08 and for ESV these ratios stand at 0.38 and 1.77.