Which is the most compelling pick right now? Hess Corporation (HES) or Brixmor Property Group Inc. (BRX)

The shares of Hess Corporation (NYSE:HES) and Brixmor Property Group Inc. (NYSE:BRX) were among the active stocks of the last trading sessions. Hess Corporation (NYSE:HES) declined to -2.58% closing at the price of $56.35 whereas the shares of Brixmor Property Group Inc. (NYSE:BRX) declined -2.24% with the decrease of -0.36 points closing at the price of $15.71. Hess Corporation has currently decrease -4.85% in its stock over the period of 6-months while its rival Brixmor Property Group Inc. added 6.65% 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 Hess Corporation (NYSE:HES) is -19.6% while the ROI of Brixmor Property Group Inc. (NYSE:BRX) is 5.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HES’s EBITDA Margin is 10.51 whereas BRX’s is 12.12.

Both the profitability ratios suggest that Brixmor Property Group Inc. (NYSE:BRX) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor
Technical Analysis of Hess Corporation & Brixmor Property Group Inc.

Moving average convergence divergence (MACD) shows that Hess Corporation (NYSE:HES) is on a PRICE RELATIVITY trend While Brixmor Property Group Inc. (NYSE:BRX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Hess Corporation was in BEARISH territory and Brixmor Property Group Inc. was in BULLISH territory.

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

EPS Growth Rate: HES’s 0% versus BRX’s -5.09%

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 Hess Corporation (NYSE:HES) is predicted at 0% while Brixmor Property Group Inc. (NYSE:BRX) stands at -5.09%. These numbers suggest that HES 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 HES stands at 2.4 while BRX is at 0 whereas the debt ratio of the prior is 0.65 while the debt ratio of the later is 1.78.

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 2.5 for HES and 2.3 for BRX which means HES has Hold rating whereas BRX 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 HES is $75.29 which is 25.16% of its current price while BRX has price target of 18.65 which is 15.76% 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.

HES currently has price to earning P/E ratio of 0 whereas BRX has 13.29 while the forward P/E ratio for the prior stands at 31.84 and for the later it depicts the value of 19.49.

The price to Book P/B for HES is 1.68, Price to Sale is at 2.73 and for BRX these ratios stand at 1.65 and 3.83.