The shares of Becton, Dickinson and Company (NYSE:BDX) and Mueller Water Products Inc (NYSE:MWA) were among the active stocks of the last trading sessions. Becton, Dickinson and Company (NYSE:BDX) soared to 1.42% closing at the price of $240.69 whereas the shares of Mueller Water Products Inc (NYSE:MWA) soared 5.26% with the increase of 0.57 points closing at the price of $11.4. Becton, Dickinson and Company has currently increase 7.74% in its stock over the period of 6-months while its rival Mueller Water Products Inc subtracted -1.72% 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 Becton, Dickinson and Company (NYSE:BDX) is 4.8% while the ROI of Mueller Water Products Inc (NYSE:MWA) is 7.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BDX’s EBITDA Margin is 19.39 whereas MWA’s is 11.11.
Both the profitability ratios suggest a mixed sentiment for Becton, Dickinson and Company (NYSE:BDX) and Mueller Water Products Inc (NYSE:MWA).
EPS & Surprise Factor
Becton, Dickinson and Company (NYSE:BDX) reported $2.93/share EPS for the previous quarter where analysts were predicting an EPS to be $2.93/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Mueller Water Products Inc (NYSE:MWA) reported EPS of $0.17/share in the last quarter. The analysts projected EPS of $0.17/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Mueller Water Products Inc tends to be beating the analyst estimates more than Becton, Dickinson and Company. so MWA is more profitable than BDX.
Technical Analysis of Becton, Dickinson and Company & Mueller Water Products Inc
Moving average convergence divergence (MACD) shows that Becton, Dickinson and Company (NYSE:BDX) is on a PRICE RELATIVITY trend While Mueller Water Products Inc (NYSE:MWA) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Becton, Dickinson and Company was in BULLISH territory and Mueller Water Products Inc was in BULLISH territory.
BDX’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While MWA’s candle is BULLISH with HIGH.
EPS Growth Rate: BDX’s 14.22% versus MWA’s 20%
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 Becton, Dickinson and Company (NYSE:BDX) is predicted at 14.22% while Mueller Water Products Inc (NYSE:MWA) stands at 20%. These numbers suggest that MWA 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 BDX stands at 1.2 while MWA is at 5.1 whereas the debt ratio of the prior is 1.04 while the debt ratio of the later is 0.83.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
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 1.9 for BDX and 2.3 for MWA which means BDX has Buy rating whereas MWA 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 BDX is $272.44 which is 11.65% of its current price while MWA has price target of 13.55 which is 15.87% 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.
BDX currently has price to earning P/E ratio of 68.32 whereas MWA has 27.74 while the forward P/E ratio for the prior stands at 19.08 and for the later it depicts the value of 17.81.
The price to Book P/B for BDX is 3.02, Price to Sale is at 4.37 and for MWA these ratios stand at 3.35 and 2.01.