The shares of Stericycle, Inc. (NASDAQ:SRCL) and Spirit Realty Capital, Inc. (NYSE:SRC) were among the active stocks of the last trading sessions. Stericycle, Inc. (NASDAQ:SRCL) declined to -6.83% closing at the price of $47.31 whereas the shares of Spirit Realty Capital, Inc. (NYSE:SRC) declined -2.26% with the decrease of -0.18 points closing at the price of $7.8. Stericycle, Inc. has currently decrease -26.02% in its stock over the period of 6-months while its rival Spirit Realty Capital, Inc. added 3.62% 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 Stericycle, Inc. (NASDAQ:SRCL) is 0.2% while the ROI of Spirit Realty Capital, Inc. (NYSE:SRC) is 0.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SRCL’s EBITDA Margin is 10.16 whereas SRC’s is 9.45.
Both the profitability ratios suggest a mixed sentiment for Stericycle, Inc. (NASDAQ:SRCL) and Spirit Realty Capital, Inc. (NYSE:SRC).
EPS & Surprise Factor
Stericycle, Inc. (NASDAQ:SRCL) reported $1.03/share EPS for the previous quarter where analysts were predicting an EPS to be $1.01/share Thus beating the analyst Estimates with a Surprise Factor of 2 Percent. While, Spirit Realty Capital, Inc. (NYSE:SRC) reported EPS of $0.03/share in the last quarter. The analysts projected EPS of $0.06/share depicting a Surprise of -50 Percent.
Taking a look at Earnings per Share, Stericycle, Inc. tends to be beating the analyst estimates more than Spirit Realty Capital, Inc.. so SRCL is more profitable than SRC.
Technical Analysis of Stericycle, Inc. & Spirit Realty Capital, Inc.
Moving average convergence divergence (MACD) shows that Stericycle, Inc. (NASDAQ:SRCL) is on a PRICE RELATIVITY trend While Spirit Realty Capital, Inc. (NYSE:SRC) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Stericycle, Inc. was in BEARISH territory and Spirit Realty Capital, Inc. was in BULLISH territory.
SRCL’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While SRC’s candle is BEARISH with HIGH.
EPS Growth Rate: SRCL’s 6.7% versus SRC’s 37.47%
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 Stericycle, Inc. (NASDAQ:SRCL) is predicted at 6.7% while Spirit Realty Capital, Inc. (NYSE:SRC) stands at 37.47%. These numbers suggest that SRC 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 SRCL stands at 1.1 while SRC is at 0 whereas the debt ratio of the prior is 0.97 while the debt ratio of the later is 0.69.
The values of the both ratios suggest that SRCL 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 2.3 for SRCL and 2.8 for SRC which means SRCL has Hold rating whereas SRC 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 SRCL is $73.67 which is 35.78% of its current price while SRC has price target of 9.39 which is 16.93% 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.
SRCL currently has price to earning P/E ratio of 108.76 whereas SRC has 54.17 while the forward P/E ratio for the prior stands at 10.81 and for the later it depicts the value of 34.21.
The price to Book P/B for SRCL is 1.4, Price to Sale is at 1.23 and for SRC these ratios stand at 1.25 and 6.32.