The shares of Ball Corporation (NYSE:BLL) and TJX Companies, Inc. (The) (NYSE:TJX) were among the active stocks of the last trading sessions. Ball Corporation (NYSE:BLL) declined to -0.55% closing at the price of $47.36 whereas the shares of TJX Companies, Inc. (The) (NYSE:TJX) declined -0.59% with the decrease of -0.65 points closing at the price of $109.49. Ball Corporation has currently increase 23.91% in its stock over the period of 6-months while its rival TJX Companies, Inc. (The) added 33.7% 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 Ball Corporation (NYSE:BLL) is 6.6% while the ROI of TJX Companies, Inc. (The) (NYSE:TJX) is 33%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BLL’s EBITDA Margin is 12.06 whereas TJX’s is 13.22.
Both the profitability ratios suggest that TJX Companies, Inc. (The) (NYSE:TJX) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Ball Corporation (NYSE:BLL) reported $0.56/share EPS for the previous quarter where analysts were predicting an EPS to be $0.59/share Thus lagging the analyst Estimates with a Surprise Factor of -5.1 Percent. While, TJX Companies, Inc. (The) (NYSE:TJX) reported EPS of $1.17/share in the last quarter. The analysts projected EPS of $1.05/share depicting a Surprise of 11.4 Percent.
Taking a look at Earnings per Share, TJX Companies, Inc. (The) tends to be beating the analyst estimates more than Ball Corporation. so TJX is more profitable than BLL.
Technical Analysis of Ball Corporation & TJX Companies, Inc. (The)
Moving average convergence divergence (MACD) shows that Ball Corporation (NYSE:BLL) is on a PRICE RELATIVITY trend While TJX Companies, Inc. (The) (NYSE:TJX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Ball Corporation was in BULLISH territory and TJX Companies, Inc. (The) was in BULLISH territory.
BLL’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While TJX’s candle is BEARISH with HIGH.
EPS Growth Rate: BLL’s 10.39% versus TJX’s 11.54%
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 Ball Corporation (NYSE:BLL) is predicted at 10.39% while TJX Companies, Inc. (The) (NYSE:TJX) stands at 11.54%. These numbers suggest that TJX 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 BLL stands at 1 while TJX is at 1.6 whereas the debt ratio of the prior is 1.83 while the debt ratio of the later is 0.43.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
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 1.8 for BLL and 2.1 for TJX which means BLL has Buy rating whereas TJX 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 BLL is $50.17 which is 5.6% of its current price while TJX has price target of 115.8 which is 5.45% 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.
BLL currently has price to earning P/E ratio of 30.75 whereas TJX has 24.16 while the forward P/E ratio for the prior stands at 17.45 and for the later it depicts the value of 20.19.
The price to Book P/B for BLL is 4.46, Price to Sale is at 1.41 and for TJX these ratios stand at 13.07 and 1.81.