The shares of Interpublic Group of Companies, Inc. (The) (NYSE:IPG) and Duke Energy Corporation (NYSE:DUK) were among the active stocks of the last trading sessions. Interpublic Group of Companies, Inc. (The) (NYSE:IPG) declined to -1.77% closing at the price of $22.8 whereas the shares of Duke Energy Corporation (NYSE:DUK) soared 1.14% with the increase of 0.93 points closing at the price of $82.59. Interpublic Group of Companies, Inc. (The) has currently decrease -3.18% in its stock over the period of 6-months while its rival Duke Energy Corporation added 3.89% 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 Interpublic Group of Companies, Inc. (The) (NYSE:IPG) is 17.6% while the ROI of Duke Energy Corporation (NYSE:DUK) is 4.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, IPG’s EBITDA Margin is 9.4 whereas DUK’s is 11.16.
Both the profitability ratios suggest a mixed sentiment for Interpublic Group of Companies, Inc. (The) (NYSE:IPG) and Duke Energy Corporation (NYSE:DUK).
EPS & Surprise Factor
Interpublic Group of Companies, Inc. (The) (NYSE:IPG) reported $0.48/share EPS for the previous quarter where analysts were predicting an EPS to be $0.46/share Thus beating the analyst Estimates with a Surprise Factor of 4.3 Percent. While, Duke Energy Corporation (NYSE:DUK) reported EPS of $1.65/share in the last quarter. The analysts projected EPS of $1.52/share depicting a Surprise of 8.6 Percent.
Taking a look at Earnings per Share, Duke Energy Corporation tends to be beating the analyst estimates more than Interpublic Group of Companies, Inc. (The). so DUK is more profitable than IPG.
Technical Analysis of Interpublic Group of Companies, Inc. (The) & Duke Energy Corporation
Moving average convergence divergence (MACD) shows that Interpublic Group of Companies, Inc. (The) (NYSE:IPG) is on a PRICE RELATIVITY trend While Duke Energy Corporation (NYSE:DUK) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Interpublic Group of Companies, Inc. (The) was in BEARISH territory and Duke Energy Corporation was in BEARISH territory.
IPG’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While DUK’s candle is BEARISH with HIGH.
EPS Growth Rate: IPG’s 7.5% versus DUK’s 4.4%
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 Interpublic Group of Companies, Inc. (The) (NYSE:IPG) is predicted at 7.5% while Duke Energy Corporation (NYSE:DUK) stands at 4.4%. These numbers suggest that IPG 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 IPG stands at 1.2 while DUK is at 0.7 whereas the debt ratio of the prior is 1.56 while the debt ratio of the later is 1.32.
The values of the both ratios suggest that IPG 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 2.6 for IPG and 2.6 for DUK which means IPG has Hold rating whereas DUK 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 IPG is $25.36 which is 10.09% of its current price while DUK has price target of 85.24 which is 3.11% 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.
IPG currently has price to earning P/E ratio of 15.56 whereas DUK has 21.65 while the forward P/E ratio for the prior stands at 12.49 and for the later it depicts the value of 16.63.
The price to Book P/B for IPG is 4.08, Price to Sale is at 0.97 and for DUK these ratios stand at 1.37 and 2.42.