The shares of PulteGroup, Inc. (NYSE:PHM) and Deutsche Bank AG (NYSE:DB) were among the active stocks of the last trading sessions. PulteGroup, Inc. (NYSE:PHM) declined to -1.58% closing at the price of $24.27 whereas the shares of Deutsche Bank AG (NYSE:DB) soared 2.63% with the increase of 0.27 points closing at the price of $10.52. PulteGroup, Inc. has currently decrease -21.73% in its stock over the period of 6-months while its rival Deutsche Bank AG subtracted -23.66% 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 PulteGroup, Inc. (NYSE:PHM) is 8.2% while the ROI of Deutsche Bank AG (NYSE:DB) is 2.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PHM’s EBITDA Margin is 6.5 whereas DB’s is NOT AVAILABLE.
Both the profitability ratios suggest a mixed sentiment for PulteGroup, Inc. (NYSE:PHM) and Deutsche Bank AG (NYSE:DB).
EPS & Surprise Factor
PulteGroup, Inc. (NYSE:PHM) reported $1.01/share EPS for the previous quarter where analysts were predicting an EPS to be $0.95/share Thus beating the analyst Estimates with a Surprise Factor of 6.3 Percent. While, Deutsche Bank AG (NYSE:DB) reported EPS of $0.17/share in the last quarter. The analysts projected EPS of $0.41/share depicting a Surprise of -58.5 Percent.
Taking a look at Earnings per Share, PulteGroup, Inc. tends to be beating the analyst estimates more than Deutsche Bank AG. so PHM is more profitable than DB.
Technical Analysis of PulteGroup, Inc. & Deutsche Bank AG
Moving average convergence divergence (MACD) shows that PulteGroup, Inc. (NYSE:PHM) is on a PRICE RELATIVITY trend While Deutsche Bank AG (NYSE:DB) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the PulteGroup, Inc. was in BULLISH territory and Deutsche Bank AG was in BEARISH territory.
PHM’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While DB’s candle is BULLISH with MEDIUM.
EPS Growth Rate: PHM’s 38.72% versus DB’s 13.47%
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 PulteGroup, Inc. (NYSE:PHM) is predicted at 38.72% while Deutsche Bank AG (NYSE:DB) stands at 13.47%. These numbers suggest that PHM 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 PHM stands at 0 while DB is at 0 whereas the debt ratio of the prior is 0.69 while the debt ratio of the later is 2.41.
The values of the both ratios suggest that DB 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 2.8 for PHM and 4 for DB which means PHM has Hold rating whereas DB has Sell 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 PHM is $26.29 which is 7.68% of its current price while DB has price target of 9.25 which is -13.73% 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.
PHM currently has price to earning P/E ratio of 6.8 whereas DB has 0 while the forward P/E ratio for the prior stands at 6.48 and for the later it depicts the value of 10.88.
The price to Book P/B for PHM is 1.46, Price to Sale is at 0.69 and for DB these ratios stand at 0.29 and 0.72.