The shares of Hi-Crush Partners LP (NYSE:HCLP) and NRG Energy, Inc. (NYSE:NRG) were among the active stocks of the last trading sessions. Hi-Crush Partners LP (NYSE:HCLP) declined to -8.79% closing at the price of $6.85 whereas the shares of NRG Energy, Inc. (NYSE:NRG) soared 0.94% with the increase of 0.35 points closing at the price of $37.42. Hi-Crush Partners LP has currently decrease -47.51% in its stock over the period of 6-months while its rival NRG Energy, Inc. added 9.54% 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 Hi-Crush Partners LP (NYSE:HCLP) is 9.4% while the ROI of NRG Energy, Inc. (NYSE:NRG) is 7.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HCLP’s EBITDA Margin is 3.39 whereas NRG’s is 10.33.
Both the profitability ratios suggest a mixed sentiment for Hi-Crush Partners LP (NYSE:HCLP) and NRG Energy, Inc. (NYSE:NRG).
EPS & Surprise Factor
Hi-Crush Partners LP (NYSE:HCLP) reported $0.59/share EPS for the previous quarter where analysts were predicting an EPS to be $0.56/share Thus beating the analyst Estimates with a Surprise Factor of 5.4 Percent. While, NRG Energy, Inc. (NYSE:NRG) reported EPS of $0.19/share in the last quarter. The analysts projected EPS of $0.79/share depicting a Surprise of -75.9 Percent.
Taking a look at Earnings per Share, Hi-Crush Partners LP tends to be beating the analyst estimates more than NRG Energy, Inc.. so HCLP is more profitable than NRG.
Technical Analysis of Hi-Crush Partners LP & NRG Energy, Inc.
Moving average convergence divergence (MACD) shows that Hi-Crush Partners LP (NYSE:HCLP) is on a PRICE RELATIVITY trend While NRG Energy, Inc. (NYSE:NRG) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Hi-Crush Partners LP was in BEARISH territory and NRG Energy, Inc. was in BULLISH territory.
HCLP’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While NRG’s candle is BULLISH with HIGH.
EPS Growth Rate: HCLP’s -1.42% versus NRG’s 78.07%
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 Hi-Crush Partners LP (NYSE:HCLP) is predicted at -1.42% while NRG Energy, Inc. (NYSE:NRG) stands at 78.07%. These numbers suggest that NRG 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 HCLP stands at 2.7 while NRG is at 1.3 whereas the debt ratio of the prior is 0.53 while the debt ratio of the later is 0.
The values of the both ratios suggest that HCLP is more suitable investment when the liquidity and risk is the main concern.
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 2.9 for HCLP and 1.7 for NRG which means HCLP has Hold rating whereas NRG 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 HCLP is $11.38 which is 39.81% of its current price while NRG has price target of 41.72 which is 10.31% 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.
HCLP currently has price to earning P/E ratio of 3.26 whereas NRG has 12.84 while the forward P/E ratio for the prior stands at 3.82 and for the later it depicts the value of 8.39.
The price to Book P/B for HCLP is 0.73, Price to Sale is at 0.84 and for NRG these ratios stand at 0 and 1.07.