The shares of Constellation Brands Inc (NYSE:STZ) and PNC Financial Services Group, Inc. (The) (NYSE:PNC) were among the active stocks of the last trading sessions. Constellation Brands Inc (NYSE:STZ) soared to 1.85% closing at the price of $204 whereas the shares of PNC Financial Services Group, Inc. (The) (NYSE:PNC) soared 0.9% with the increase of 1.18 points closing at the price of $131.76. Constellation Brands Inc has currently decrease -8.1% in its stock over the period of 6-months while its rival PNC Financial Services Group, Inc. (The) subtracted -12.33% 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 Constellation Brands Inc (NYSE:STZ) is 10% while the ROI of PNC Financial Services Group, Inc. (The) (NYSE:PNC) is 8.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, STZ’s EBITDA Margin is 17.56 whereas PNC’s is NOT AVAILABLE.
Both the profitability ratios suggest a mixed sentiment for Constellation Brands Inc (NYSE:STZ) and PNC Financial Services Group, Inc. (The) (NYSE:PNC).
EPS & Surprise Factor
Constellation Brands Inc (NYSE:STZ) reported $2.87/share EPS for the previous quarter where analysts were predicting an EPS to be $2.6/share Thus beating the analyst Estimates with a Surprise Factor of 10.4 Percent. While, PNC Financial Services Group, Inc. (The) (NYSE:PNC) reported EPS of $2.82/share in the last quarter. The analysts projected EPS of $2.72/share depicting a Surprise of 3.7 Percent.
Taking a look at Earnings per Share, Constellation Brands Inc tends to be beating the analyst estimates more than PNC Financial Services Group, Inc. (The). so STZ is more profitable than PNC.
Technical Analysis of Constellation Brands Inc & PNC Financial Services Group, Inc. (The)
Moving average convergence divergence (MACD) shows that Constellation Brands Inc (NYSE:STZ) is on a PRICE RELATIVITY trend While PNC Financial Services Group, Inc. (The) (NYSE:PNC) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Constellation Brands Inc was in BEARISH territory and PNC Financial Services Group, Inc. (The) was in BULLISH territory.
STZ’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While PNC’s candle is BULLISH with HIGH.
EPS Growth Rate: STZ’s 12% versus PNC’s 10.15%
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 Constellation Brands Inc (NYSE:STZ) is predicted at 12% while PNC Financial Services Group, Inc. (The) (NYSE:PNC) stands at 10.15%. These numbers suggest that STZ 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 STZ stands at 1.7 while PNC is at 0 whereas the debt ratio of the prior is 0.88 while the debt ratio of the later is 0.81.
The values of the both ratios suggest that STZ 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 2.2 for STZ and 2.3 for PNC which means STZ has Hold rating whereas PNC 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 STZ is $248.86 which is 18.03% of its current price while PNC has price target of 150.48 which is 12.44% 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.
STZ currently has price to earning P/E ratio of 15.3 whereas PNC has 13.61 while the forward P/E ratio for the prior stands at 19.88 and for the later it depicts the value of 11.46.
The price to Book P/B for STZ is 3.45, Price to Sale is at 4.87 and for PNC these ratios stand at 1.3 and 5.07.