The shares of Apple Hospitality REIT, Inc. (NYSE:APLE) and Sea Limited (NYSE:SE) were among the active stocks of the last trading sessions. Apple Hospitality REIT, Inc. (NYSE:APLE) declined to -3.01% closing at the price of $15.78 whereas the shares of Sea Limited (NYSE:SE) soared 3.6% with the increase of 0.44 points closing at the price of $12.65. Apple Hospitality REIT, Inc. has currently decrease -14.84% in its stock over the period of 6-months while its rival Sea Limited added 22.34% 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 Apple Hospitality REIT, Inc. (NYSE:APLE) is 4.5% while the ROI of Sea Limited (NYSE:SE) is -42.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, APLE’s EBITDA Margin is 11.52 whereas SE’s is -5.69.
Both the profitability ratios suggest that Apple Hospitality REIT, Inc. (NYSE:APLE) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Apple Hospitality REIT, Inc. (NYSE:APLE) reported $0.27/share EPS for the previous quarter where analysts were predicting an EPS to be $0.29/share Thus lagging the analyst Estimates with a Surprise Factor of -6.9 Percent. While, Sea Limited (NYSE:SE) reported EPS of $-0.59/share in the last quarter. The analysts projected EPS of $-0.56/share depicting a Surprise of -5.4 Percent.
Taking a look at Earnings per Share, Sea Limited tends to be beating the analyst estimates more than Apple Hospitality REIT, Inc.. so SE is more profitable than APLE.
Technical Analysis of Apple Hospitality REIT, Inc. & Sea Limited
Moving average convergence divergence (MACD) shows that Apple Hospitality REIT, Inc. (NYSE:APLE) is on a PRICE RELATIVITY trend While Sea Limited (NYSE:SE) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Apple Hospitality REIT, Inc. was in BEARISH territory and Sea Limited was in BULLISH territory.
APLE’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While SE’s candle is BULLISH with LOW.
EPS Growth Rate: APLE’s 0% versus SE’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 Apple Hospitality REIT, Inc. (NYSE:APLE) is predicted at 0% while Sea Limited (NYSE:SE) stands at 0%. These numbers suggest that SE 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 APLE stands at 0 while SE is at 2.5 whereas the debt ratio of the prior is 0.39 while the debt ratio of the later is 5.01.
The values of the both ratios suggest that SE 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 2.4 for APLE and 1.7 for SE which means APLE has Hold rating whereas SE 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 APLE is $19.5 which is 19.08% of its current price while SE has price target of 18.07 which is 29.99% 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.
APLE currently has price to earning P/E ratio of 21.1 whereas SE has 0 while the forward P/E ratio for the prior stands at 16.7 and for the later it depicts the value of 0.
The price to Book P/B for APLE is 1.02, Price to Sale is at 2.91 and for SE these ratios stand at 18.6 and 7.7.