The shares of Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) and Hecla Mining Company (NYSE:HL) were among the active stocks of the last trading sessions. Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) declined to -1.29% closing at the price of $45.8 whereas the shares of Hecla Mining Company (NYSE:HL) soared 0.78% with the increase of 0.02 points closing at the price of $2.58. Norwegian Cruise Line Holdings Ltd. has currently decrease -8.96% in its stock over the period of 6-months while its rival Hecla Mining Company subtracted -34.85% 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 Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) is 8.5% while the ROI of Hecla Mining Company (NYSE:HL) is 0.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NCLH’s EBITDA Margin is 10.4 whereas HL’s is 7.27.
Both the profitability ratios suggest that Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Technical Analysis of Norwegian Cruise Line Holdings Ltd. & Hecla Mining Company
Moving average convergence divergence (MACD) shows that Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) is on a PRICE RELATIVITY trend While Hecla Mining Company (NYSE:HL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Norwegian Cruise Line Holdings Ltd. was in BEARISH territory and Hecla Mining Company was in BEARISH territory.
NCLH’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While HL’s candle is BULLISH with HIGH.
EPS Growth Rate: NCLH’s 13.15% versus HL’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 Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) is predicted at 13.15% while Hecla Mining Company (NYSE:HL) stands at 0%. These numbers suggest that NCLH 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 NCLH stands at 0.2 while HL is at 3.3 whereas the debt ratio of the prior is 1.2 while the debt ratio of the later is 0.37.
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 1.8 for NCLH and 2.8 for HL which means NCLH has Buy rating whereas HL 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 NCLH is $65.35 which is 29.92% of its current price while HL has price target of 3.97 which is 35.01% 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.
NCLH currently has price to earning P/E ratio of 12.72 whereas HL has 0 while the forward P/E ratio for the prior stands at 8.87 and for the later it depicts the value of 46.91.
The price to Book P/B for NCLH is 1.8, Price to Sale is at 1.8 and for HL these ratios stand at 0.69 and 2.08.