Two Worthy Stocks for investors: Devon Energy Corporation (DVN), New Age Beverages Corporation (NBEV)

The shares of Devon Energy Corporation (NYSE:DVN) and New Age Beverages Corporation (NASDAQ:NBEV) were among the active stocks of the last trading sessions. Devon Energy Corporation (NYSE:DVN) declined to -0.51% closing at the price of $32.93 whereas the shares of New Age Beverages Corporation (NASDAQ:NBEV) declined -3.64% with the decrease of -0.16 points closing at the price of $4.23. Devon Energy Corporation has currently decrease -18.13% in its stock over the period of 6-months while its rival New Age Beverages Corporation added 129.89% 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 Devon Energy Corporation (NYSE:DVN) is 9.5% while the ROI of New Age Beverages Corporation (NASDAQ:NBEV) is -10%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DVN’s EBITDA Margin is 9.05 whereas NBEV’s is -24.43.

Both the profitability ratios suggest that Devon Energy Corporation (NYSE:DVN) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Devon Energy Corporation (NYSE:DVN) reported $0.65/share EPS for the previous quarter where analysts were predicting an EPS to be $0.42/share Thus beating the analyst Estimates with a Surprise Factor of 54.8 Percent. While, New Age Beverages Corporation (NASDAQ:NBEV) reported EPS of $-0.09/share in the last quarter. The analysts projected EPS of $-0.02/share depicting a Surprise of -350 Percent.

Taking a look at Earnings per Share, Devon Energy Corporation tends to be beating the analyst estimates more than New Age Beverages Corporation. so DVN is more profitable than NBEV.

Technical Analysis of Devon Energy Corporation & New Age Beverages Corporation

Moving average convergence divergence (MACD) shows that Devon Energy Corporation (NYSE:DVN) is on a PRICE RELATIVITY trend While New Age Beverages Corporation (NASDAQ:NBEV) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Devon Energy Corporation was in BULLISH territory and New Age Beverages Corporation was in BULLISH territory.

DVN’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While NBEV’s candle is BEARISH with LOW.

EPS Growth Rate: DVN’s 72.52% versus NBEV’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 Devon Energy Corporation (NYSE:DVN) is predicted at 72.52% while New Age Beverages Corporation (NASDAQ:NBEV) stands at 0%. These numbers suggest that DVN 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 DVN stands at 1.6 while NBEV is at 1.5 whereas the debt ratio of the prior is 0.76 while the debt ratio of the later is 0.18.

The values of the both ratios suggest that DVN is more suitable investment when the liquidity and risk is the main concern.

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 for DVN and 2.3 for NBEV which means DVN has Buy rating whereas NBEV 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 DVN is $51.79 which is 36.42% of its current price while NBEV has price target of 3.5 which is -20.86% 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.

DVN currently has price to earning P/E ratio of 0 whereas NBEV has 0 while the forward P/E ratio for the prior stands at 12.05 and for the later it depicts the value of 0.

The price to Book P/B for DVN is 2.12, Price to Sale is at 1.47 and for NBEV these ratios stand at 3.16 and 4.15.