The shares of Community Health Systems, Inc. (NYSE:CYH) and Cousins Properties Incorporated (NYSE:CUZ) were among the active stocks of the last trading sessions. Community Health Systems, Inc. (NYSE:CYH) soared to 7.78% closing at the price of $3.6 whereas the shares of Cousins Properties Incorporated (NYSE:CUZ) soared 0.24% with the increase of 0.02 points closing at the price of $8.32. Community Health Systems, Inc. has currently decrease -25.62% in its stock over the period of 6-months while its rival Cousins Properties Incorporated subtracted -10.15% 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 Community Health Systems, Inc. (NYSE:CYH) is -10.9% while the ROI of Cousins Properties Incorporated (NYSE:CUZ) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CYH’s EBITDA Margin is 17.91 whereas CUZ’s is 16.74.
Both the profitability ratios suggest a mixed sentiment for Community Health Systems, Inc. (NYSE:CYH) and Cousins Properties Incorporated (NYSE:CUZ).
EPS & Surprise Factor
Community Health Systems, Inc. (NYSE:CYH) reported $-1.64/share EPS for the previous quarter where analysts were predicting an EPS to be $-1.02/share Thus lagging the analyst Estimates with a Surprise Factor of -60.8 Percent. While, Cousins Properties Incorporated (NYSE:CUZ) reported EPS of $0.05/share in the last quarter. The analysts projected EPS of $0.01/share depicting a Surprise of 400 Percent.
Taking a look at Earnings per Share, Cousins Properties Incorporated tends to be beating the analyst estimates more than Community Health Systems, Inc.. so CUZ is more profitable than CYH.
Technical Analysis of Community Health Systems, Inc. & Cousins Properties Incorporated
Moving average convergence divergence (MACD) shows that Community Health Systems, Inc. (NYSE:CYH) is on a PRICE RELATIVITY trend While Cousins Properties Incorporated (NYSE:CUZ) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Community Health Systems, Inc. was in BULLISH territory and Cousins Properties Incorporated was in BULLISH territory.
CYH’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While CUZ’s candle is BEARISH with HIGH.
EPS Growth Rate: CYH’s -1.95% versus CUZ’s 0%
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 Community Health Systems, Inc. (NYSE:CYH) is predicted at -1.95% while Cousins Properties Incorporated (NYSE:CUZ) stands at 0%. These numbers suggest that CUZ 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 CYH stands at 1.5 while CUZ is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.39.
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 3.4 for CYH and 1.8 for CUZ which means CYH has Sell rating whereas CUZ 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 CYH is $3.44 which is -4.65% of its current price while CUZ has price target of 9.96 which is 16.47% 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.
CYH currently has price to earning P/E ratio of 0 whereas CUZ has 40.39 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 104.
The price to Book P/B for CYH is 0, Price to Sale is at 0.03 and for CUZ these ratios stand at 1.27 and 7.48.