The shares of Baytex Energy Corp (NYSE:BTE) and Abbott Laboratories (NYSE:ABT) were among the active stocks of the last trading sessions. Baytex Energy Corp (NYSE:BTE) declined to -2.83% closing at the price of $2.06 whereas the shares of Abbott Laboratories (NYSE:ABT) soared 0.06% with the increase of 0.04 points closing at the price of $70.19. Baytex Energy Corp has currently decrease -53.08% in its stock over the period of 6-months while its rival Abbott Laboratories added 18.32% 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 Baytex Energy Corp (NYSE:BTE) is -0.1% while the ROI of Abbott Laboratories (NYSE:ABT) is 2.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BTE’s EBITDA Margin is 6.88 whereas ABT’s is 20.93.
Both the profitability ratios suggest that Abbott Laboratories (NYSE:ABT) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Baytex Energy Corp (NYSE:BTE) reported $-0.03/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.1/share Thus beating the analyst Estimates with a Surprise Factor of 70 Percent. While, Abbott Laboratories (NYSE:ABT) reported EPS of $0.75/share in the last quarter. The analysts projected EPS of $0.75/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Baytex Energy Corp tends to be beating the analyst estimates more than Abbott Laboratories. so BTE is more profitable than ABT.
Technical Analysis of Baytex Energy Corp & Abbott Laboratories
Moving average convergence divergence (MACD) shows that Baytex Energy Corp (NYSE:BTE) is on a PRICE RELATIVITY trend While Abbott Laboratories (NYSE:ABT) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Baytex Energy Corp was in BEARISH territory and Abbott Laboratories was in BULLISH territory.
BTE’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While ABT’s candle is BEARISH with HIGH.
EPS Growth Rate: BTE’s 18.2% versus ABT’s 11.47%
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 Baytex Energy Corp (NYSE:BTE) is predicted at 18.2% while Abbott Laboratories (NYSE:ABT) stands at 11.47%. These numbers suggest that BTE 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 BTE stands at 0 while ABT is at 1.4 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.77.
The values of the both ratios suggest that ABT 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 2.7 for BTE and 1.8 for ABT which means BTE has Hold rating whereas ABT 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 BTE is $3.94 which is 47.72% of its current price while ABT has price target of 78.94 which is 11.08% 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.
BTE currently has price to earning P/E ratio of 0 whereas ABT has 53.17 while the forward P/E ratio for the prior stands at 8.77 and for the later it depicts the value of 21.91.
The price to Book P/B for BTE is 0.34, Price to Sale is at 1.66 and for ABT these ratios stand at 4.02 and 4.05.