Top Movers Performance Overview-Occidental Petroleum Corporation (OXY), Enterprise Products Partners L.P. (EPD)

The shares of Occidental Petroleum Corporation (NYSE:OXY) and Enterprise Products Partners L.P. (NYSE:EPD) were among the active stocks of the last trading sessions. Occidental Petroleum Corporation (NYSE:OXY) declined to -0.06% closing at the price of $68.31 whereas the shares of Enterprise Products Partners L.P. (NYSE:EPD) declined -1.37% with the decrease of -0.37 points closing at the price of $26.64. Occidental Petroleum Corporation has currently decrease -11.61% in its stock over the period of 6-months while its rival Enterprise Products Partners L.P. added 0.38% 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 Occidental Petroleum Corporation (NYSE:OXY) is 2.2% while the ROI of Enterprise Products Partners L.P. (NYSE:EPD) is 8.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, OXY’s EBITDA Margin is 9.22 whereas EPD’s is 16.07.

Both the profitability ratios suggest that Enterprise Products Partners L.P. (NYSE:EPD) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Occidental Petroleum Corporation (NYSE:OXY) reported $1.1/share EPS for the previous quarter where analysts were predicting an EPS to be $1.21/share Thus lagging the analyst Estimates with a Surprise Factor of -9.1 Percent. While, Enterprise Products Partners L.P. (NYSE:EPD) reported EPS of $0.6/share in the last quarter. The analysts projected EPS of $0.45/share depicting a Surprise of 33.3 Percent.

Taking a look at Earnings per Share, Enterprise Products Partners L.P. tends to be beating the analyst estimates more than Occidental Petroleum Corporation. so EPD is more profitable than OXY.

Technical Analysis of Occidental Petroleum Corporation & Enterprise Products Partners L.P.

Moving average convergence divergence (MACD) shows that Occidental Petroleum Corporation (NYSE:OXY) is on a PRICE RELATIVITY trend While Enterprise Products Partners L.P. (NYSE:EPD) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Occidental Petroleum Corporation was in BEARISH territory and Enterprise Products Partners L.P. was in BEARISH territory.

OXY’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While EPD’s candle is BEARISH with HIGH.

EPS Growth Rate: OXY’s 65.67% versus EPD’s 9.76%

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 Occidental Petroleum Corporation (NYSE:OXY) is predicted at 65.67% while Enterprise Products Partners L.P. (NYSE:EPD) stands at 9.76%. These numbers suggest that OXY 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 OXY stands at 1.4 while EPD is at 0.7 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 1.13.

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 for OXY and 1.5 for EPD which means OXY has Buy rating whereas EPD 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 OXY is $94.18 which is 27.47% of its current price while EPD has price target of 33.95 which is 21.53% 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.

OXY currently has price to earning P/E ratio of 23.58 whereas EPD has 19.68 while the forward P/E ratio for the prior stands at 11.31 and for the later it depicts the value of 13.95.

The price to Book P/B for OXY is 2.5, Price to Sale is at 3.58 and for EPD these ratios stand at 2.55 and 1.78.