The shares of Grifols, S.A. (NASDAQ:GRFS) and Host Hotels & Resorts, Inc. (NYSE:HST) were among the active stocks of the last trading sessions. Grifols, S.A. (NASDAQ:GRFS) declined to -0.29% closing at the price of $20.93 whereas the shares of Host Hotels & Resorts, Inc. (NYSE:HST) declined -3.9% with the decrease of -0.75 points closing at the price of $18.5. Grifols, S.A. has currently decrease -3.19% in its stock over the period of 6-months while its rival Host Hotels & Resorts, Inc. subtracted -10.24% 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 Grifols, S.A. (NASDAQ:GRFS) is 0% while the ROI of Host Hotels & Resorts, Inc. (NYSE:HST) is 5.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, GRFS’s EBITDA Margin is 21.13 whereas HST’s is 11.93.
Both the profitability ratios suggest a mixed sentiment for Grifols, S.A. (NASDAQ:GRFS) and Host Hotels & Resorts, Inc. (NYSE:HST).
EPS & Surprise Factor
Grifols, S.A. (NASDAQ:GRFS) reported $0.3/share EPS for the previous quarter where analysts were predicting an EPS to be $0.31/share Thus lagging the analyst Estimates with a Surprise Factor of -3.2 Percent. While, Host Hotels & Resorts, Inc. (NYSE:HST) reported EPS of $0.43/share in the last quarter. The analysts projected EPS of $0.11/share depicting a Surprise of 290.9 Percent.
Taking a look at Earnings per Share, Host Hotels & Resorts, Inc. tends to be beating the analyst estimates more than Grifols, S.A.. so HST is more profitable than GRFS.
Technical Analysis of Grifols, S.A. & Host Hotels & Resorts, Inc.
Moving average convergence divergence (MACD) shows that Grifols, S.A. (NASDAQ:GRFS) is on a PRICE RELATIVITY trend While Host Hotels & Resorts, Inc. (NYSE:HST) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Grifols, S.A. was in BULLISH territory and Host Hotels & Resorts, Inc. was in BULLISH territory.
GRFS’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While HST’s candle is BEARISH with HIGH.
EPS Growth Rate: GRFS’s 11.3% versus HST’s 28.4%
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 Grifols, S.A. (NASDAQ:GRFS) is predicted at 11.3% while Host Hotels & Resorts, Inc. (NYSE:HST) stands at 28.4%. These numbers suggest that HST 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 GRFS stands at 0 while HST is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.59.
The values of the both ratios suggest that HST 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 2.3 for GRFS and 2.5 for HST which means GRFS has Hold rating whereas HST 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 GRFS is $22.63 which is 7.51% of its current price while HST has price target of 21.66 which is 14.59% 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.
GRFS currently has price to earning P/E ratio of 34.94 whereas HST has 15.52 while the forward P/E ratio for the prior stands at 15.28 and for the later it depicts the value of 24.03.
The price to Book P/B for GRFS is 6.19, Price to Sale is at 2.89 and for HST these ratios stand at 1.92 and 2.58.