The shares of BB&T Corporation (NYSE:BBT) and Las Vegas Sands Corp. (NYSE:LVS) were among the active stocks of the last trading sessions. BB&T Corporation (NYSE:BBT) soared to 0.48% closing at the price of $49.97 whereas the shares of Las Vegas Sands Corp. (NYSE:LVS) soared 0.53% with the increase of 0.29 points closing at the price of $55.41. BB&T Corporation has currently decrease -9.01% in its stock over the period of 6-months while its rival Las Vegas Sands Corp. subtracted -28.86% 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 BB&T Corporation (NYSE:BBT) is 9.6% while the ROI of Las Vegas Sands Corp. (NYSE:LVS) is 19.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BBT’s EBITDA Margin is NOT AVAILABLE whereas LVS’s is 9.86.
Both the profitability ratios suggest a mixed sentiment for BB&T Corporation (NYSE:BBT) and Las Vegas Sands Corp. (NYSE:LVS).
EPS & Surprise Factor
BB&T Corporation (NYSE:BBT) reported $1.01/share EPS for the previous quarter where analysts were predicting an EPS to be $1/share Thus beating the analyst Estimates with a Surprise Factor of 1 Percent. While, Las Vegas Sands Corp. (NYSE:LVS) reported EPS of $0.77/share in the last quarter. The analysts projected EPS of $0.81/share depicting a Surprise of -4.9 Percent.
Taking a look at Earnings per Share, BB&T Corporation tends to be beating the analyst estimates more than Las Vegas Sands Corp.. so BBT is more profitable than LVS.
Technical Analysis of BB&T Corporation & Las Vegas Sands Corp.
Moving average convergence divergence (MACD) shows that BB&T Corporation (NYSE:BBT) is on a PRICE RELATIVITY trend While Las Vegas Sands Corp. (NYSE:LVS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the BB&T Corporation was in BULLISH territory and Las Vegas Sands Corp. was in BULLISH territory.
BBT’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While LVS’s candle is BULLISH with HIGH.
EPS Growth Rate: BBT’s 7.05% versus LVS’s 6.98%
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 BB&T Corporation (NYSE:BBT) is predicted at 7.05% while Las Vegas Sands Corp. (NYSE:LVS) stands at 6.98%. These numbers suggest that BBT 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 BBT stands at 0 while LVS is at 1.9 whereas the debt ratio of the prior is 0.77 while the debt ratio of the later is 1.75.
The values of the both ratios suggest that LVS 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 BBT and 2.3 for LVS which means BBT has Hold rating whereas LVS 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 BBT is $55.84 which is 10.51% of its current price while LVS has price target of 68.26 which is 18.83% 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.
BBT currently has price to earning P/E ratio of 13.67 whereas LVS has 16.85 while the forward P/E ratio for the prior stands at 11.47 and for the later it depicts the value of 16.04.
The price to Book P/B for BBT is 1.43, Price to Sale is at 4.89 and for LVS these ratios stand at 6.35 and 3.22.