The shares of Emerge Energy Services LP (NYSE:EMES) and E*TRADE Financial Corporation (NASDAQ:ETFC) were among the active stocks of the last trading sessions. Emerge Energy Services LP (NYSE:EMES) soared to 28.69% closing at the price of $3.14 whereas the shares of E*TRADE Financial Corporation (NASDAQ:ETFC) soared 1.21% with the increase of 0.61 points closing at the price of $51.11. Emerge Energy Services LP has currently decrease -63.02% in its stock over the period of 6-months while its rival E*TRADE Financial Corporation subtracted -17.76% 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 Emerge Energy Services LP (NYSE:EMES) is 4.8% while the ROI of E*TRADE Financial Corporation (NASDAQ:ETFC) is 1.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, EMES’s EBITDA Margin is 3.89 whereas ETFC’s is NOT AVAILABLE.
Both the profitability ratios suggest a mixed sentiment for Emerge Energy Services LP (NYSE:EMES) and E*TRADE Financial Corporation (NASDAQ:ETFC).
EPS & Surprise Factor
Emerge Energy Services LP (NYSE:EMES) reported $0.3/share EPS for the previous quarter where analysts were predicting an EPS to be $0.37/share Thus lagging the analyst Estimates with a Surprise Factor of -18.9 Percent. While, E*TRADE Financial Corporation (NASDAQ:ETFC) reported EPS of $1/share in the last quarter. The analysts projected EPS of $0.82/share depicting a Surprise of 22 Percent.
Taking a look at Earnings per Share, E*TRADE Financial Corporation tends to be beating the analyst estimates more than Emerge Energy Services LP. so ETFC is more profitable than EMES.
Technical Analysis of Emerge Energy Services LP & E*TRADE Financial Corporation
Moving average convergence divergence (MACD) shows that Emerge Energy Services LP (NYSE:EMES) is on a PRICE RELATIVITY trend While E*TRADE Financial Corporation (NASDAQ:ETFC) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Emerge Energy Services LP was in BEARISH territory and E*TRADE Financial Corporation was in BULLISH territory.
EMES’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While ETFC’s candle is BULLISH with HIGH.
EPS Growth Rate: EMES’s 15% versus ETFC’s 26.9%
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 Emerge Energy Services LP (NYSE:EMES) is predicted at 15% while E*TRADE Financial Corporation (NASDAQ:ETFC) stands at 26.9%. These numbers suggest that ETFC 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 EMES stands at 1.7 while ETFC is at 0 whereas the debt ratio of the prior is 3.14 while the debt ratio of the later is 7.41.
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 2.9 for EMES and 1.8 for ETFC which means EMES has Hold rating whereas ETFC 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 EMES is $5.42 which is 42.07% of its current price while ETFC has price target of 62.27 which is 17.92% 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.
EMES currently has price to earning P/E ratio of 4.4 whereas ETFC has 14.54 while the forward P/E ratio for the prior stands at 3.88 and for the later it depicts the value of 12.21.
The price to Book P/B for EMES is 1.47, Price to Sale is at 0.18 and for ETFC these ratios stand at 2.18 and 4.57.