Performance Comparison of Duke Energy Corporation (DUK) and Church & Dwight Company, Inc. (CHD)

The shares of Duke Energy Corporation (NYSE:DUK) and Church & Dwight Company, Inc. (NYSE:CHD) were among the active stocks of the last trading sessions. Duke Energy Corporation (NYSE:DUK) soared to 0.9% closing at the price of $84.33 whereas the shares of Church & Dwight Company, Inc. (NYSE:CHD) soared 1.94% with the increase of 1.29 points closing at the price of $67.88. Duke Energy Corporation has currently increase 8.62% in its stock over the period of 6-months while its rival Church & Dwight Company, Inc. added 42.16% 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 Duke Energy Corporation (NYSE:DUK) is 4.7% while the ROI of Church & Dwight Company, Inc. (NYSE:CHD) is 11.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DUK’s EBITDA Margin is 11.16 whereas CHD’s is 17.72.

Both the profitability ratios suggest that Church & Dwight Company, Inc. (NYSE:CHD) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Duke Energy Corporation (NYSE:DUK) reported $1.65/share EPS for the previous quarter where analysts were predicting an EPS to be $1.52/share Thus beating the analyst Estimates with a Surprise Factor of 8.6 Percent. While, Church & Dwight Company, Inc. (NYSE:CHD) reported EPS of $0.58/share in the last quarter. The analysts projected EPS of $0.54/share depicting a Surprise of 7.4 Percent.

Taking a look at Earnings per Share, Duke Energy Corporation tends to be beating the analyst estimates more than Church & Dwight Company, Inc.. so DUK is more profitable than CHD.

Technical Analysis of Duke Energy Corporation & Church & Dwight Company, Inc.

Moving average convergence divergence (MACD) shows that Duke Energy Corporation (NYSE:DUK) is on a PRICE RELATIVITY trend While Church & Dwight Company, Inc. (NYSE:CHD) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Duke Energy Corporation was in BEARISH territory and Church & Dwight Company, Inc. was in BULLISH territory.

DUK’s current statistics gauge that the stock candle is BULLISH with MEDIUM volatility. While CHD’s candle is BULLISH with HIGH.

EPS Growth Rate: DUK’s 4.4% versus CHD’s 10.59%

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 Duke Energy Corporation (NYSE:DUK) is predicted at 4.4% while Church & Dwight Company, Inc. (NYSE:CHD) stands at 10.59%. These numbers suggest that CHD 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 DUK stands at 0.7 while CHD is at 0.9 whereas the debt ratio of the prior is 1.32 while the debt ratio of the later is 0.89.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

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 DUK and 2.8 for CHD which means DUK has Hold rating whereas CHD 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 DUK is $85.24 which is 1.07% of its current price while CHD has price target of 59.61 which is -13.87% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

DUK currently has price to earning P/E ratio of 22.1 whereas CHD has 30.49 while the forward P/E ratio for the prior stands at 16.98 and for the later it depicts the value of 27.6.

The price to Book P/B for DUK is 1.39, Price to Sale is at 2.47 and for CHD these ratios stand at 7.09 and 4.06.