The shares of Regions Financial Corporation (NYSE:RF) and Marvell Technology Group Ltd. (NASDAQ:MRVL) were among the active stocks of the last trading sessions. Regions Financial Corporation (NYSE:RF) soared to 0.29% closing at the price of $17.26 whereas the shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) soared 0.06% with the increase of 0.01 points closing at the price of $17.59. Regions Financial Corporation has currently decrease -7.95% in its stock over the period of 6-months while its rival Marvell Technology Group Ltd. subtracted -15.43% 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 Regions Financial Corporation (NYSE:RF) is 14.6% while the ROI of Marvell Technology Group Ltd. (NASDAQ:MRVL) is 10.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, RF’s EBITDA Margin is NOT AVAILABLE whereas MRVL’s is 21.27.
Both the profitability ratios suggest that Regions Financial Corporation (NYSE:RF) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Regions Financial Corporation (NYSE:RF) reported $0.5/share EPS for the previous quarter where analysts were predicting an EPS to be $0.36/share Thus beating the analyst Estimates with a Surprise Factor of 38.9 Percent. While, Marvell Technology Group Ltd. (NASDAQ:MRVL) reported EPS of $0.28/share in the last quarter. The analysts projected EPS of $0.35/share depicting a Surprise of -20 Percent.
Taking a look at Earnings per Share, Regions Financial Corporation tends to be beating the analyst estimates more than Marvell Technology Group Ltd.. so RF is more profitable than MRVL.
Technical Analysis of Regions Financial Corporation & Marvell Technology Group Ltd.
Moving average convergence divergence (MACD) shows that Regions Financial Corporation (NYSE:RF) is on a PRICE RELATIVITY trend While Marvell Technology Group Ltd. (NASDAQ:MRVL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Regions Financial Corporation was in BULLISH territory and Marvell Technology Group Ltd. was in BEARISH territory.
RF’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While MRVL’s candle is BULLISH with HIGH.
EPS Growth Rate: RF’s 9% versus MRVL’s 14.1%
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 Regions Financial Corporation (NYSE:RF) is predicted at 9% while Marvell Technology Group Ltd. (NASDAQ:MRVL) stands at 14.1%. These numbers suggest that MRVL 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 RF stands at 0 while MRVL is at 2.5 whereas the debt ratio of the prior is 0.32 while the debt ratio of the later is 0.25.
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 2.6 for RF and 1.9 for MRVL which means RF has Hold rating whereas MRVL 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 RF is $19.75 which is 12.61% of its current price while MRVL has price target of 26.52 which is 33.67% 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.
RF currently has price to earning P/E ratio of 13.24 whereas MRVL has 26.77 while the forward P/E ratio for the prior stands at 10.88 and for the later it depicts the value of 11.52.
The price to Book P/B for RF is 1.29, Price to Sale is at 4.46 and for MRVL these ratios stand at 1.27 and 4.63.