The shares of Diana Containerships Inc. (NASDAQ:DCIX) and Tenaris S.A. (NYSE:TS) were among the active stocks of the last trading sessions. Diana Containerships Inc. (NASDAQ:DCIX) soared to 5.39% closing at the price of $1.76 whereas the shares of Tenaris S.A. (NYSE:TS) soared 0.39% with the increase of 0.12 points closing at the price of $30.88. Diana Containerships Inc. has currently decrease -14.15% in its stock over the period of 6-months while its rival Tenaris S.A. subtracted -20.17% 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 Diana Containerships Inc. (NASDAQ:DCIX) is -10.8% while the ROI of Tenaris S.A. (NYSE:TS) is 2.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DCIX’s EBITDA Margin is -17.54 whereas TS’s is 14.84.
Both the profitability ratios suggest that Tenaris S.A. (NYSE:TS) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Diana Containerships Inc. (NASDAQ:DCIX) reported $-128.67/share EPS for the previous quarter where analysts were predicting an EPS to be $-4877.46/share Thus beating the analyst Estimates with a Surprise Factor of 97.4 Percent. While, Tenaris S.A. (NYSE:TS) reported EPS of $0.42/share in the last quarter. The analysts projected EPS of $0.35/share depicting a Surprise of 20 Percent.
Taking a look at Earnings per Share, Diana Containerships Inc. tends to be beating the analyst estimates more than Tenaris S.A.. so DCIX is more profitable than TS.
Technical Analysis of Diana Containerships Inc. & Tenaris S.A.
Moving average convergence divergence (MACD) shows that Diana Containerships Inc. (NASDAQ:DCIX) is on a PRICE RELATIVITY trend While Tenaris S.A. (NYSE:TS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Diana Containerships Inc. was in BULLISH territory and Tenaris S.A. was in BULLISH territory.
DCIX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While TS’s candle is BULLISH with MEDIUM.
EPS Growth Rate: DCIX’s 10% versus TS’s 45.7%
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 Diana Containerships Inc. (NASDAQ:DCIX) is predicted at 10% while Tenaris S.A. (NYSE:TS) stands at 45.7%. These numbers suggest that TS 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 DCIX stands at 0 while TS is at 2.7 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.06.
The values of the both ratios suggest that TS 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 5 for DCIX and 2.2 for TS which means DCIX has Strong Sell rating whereas TS 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 DCIX is $6.16 which is 71.43% of its current price while TS has price target of 40.45 which is 23.66% 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.
DCIX currently has price to earning P/E ratio of 0 whereas TS has 22.49 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 18.05.
The price to Book P/B for DCIX is 0.15, Price to Sale is at 0.63 and for TS these ratios stand at 1.56 and 2.54.