The shares of Nutrien Ltd. (NYSE:NTR) and National Oilwell Varco, Inc. (NYSE:NOV) were among the active stocks of the last trading sessions. Nutrien Ltd. (NYSE:NTR) soared to 5.13% closing at the price of $56.98 whereas the shares of National Oilwell Varco, Inc. (NYSE:NOV) soared 0.93% with the increase of 0.34 points closing at the price of $36.87. Nutrien Ltd. has currently increase 17.03% in its stock over the period of 6-months while its rival National Oilwell Varco, Inc. subtracted -8.67% 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 Nutrien Ltd. (NYSE:NTR) is 0% while the ROI of National Oilwell Varco, Inc. (NYSE:NOV) is -2.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NTR’s EBITDA Margin is 16.03 whereas NOV’s is 26.23.
Both the profitability ratios suggest a mixed sentiment for Nutrien Ltd. (NYSE:NTR) and National Oilwell Varco, Inc. (NYSE:NOV).
EPS & Surprise Factor
Nutrien Ltd. (NYSE:NTR) reported $0.78/share EPS for the previous quarter where analysts were predicting an EPS to be $0.39/share Thus beating the analyst Estimates with a Surprise Factor of 100 Percent. While, National Oilwell Varco, Inc. (NYSE:NOV) reported EPS of $0/share in the last quarter. The analysts projected EPS of $0.12/share depicting a Surprise of -100 Percent.
Taking a look at Earnings per Share, Nutrien Ltd. tends to be beating the analyst estimates more than National Oilwell Varco, Inc.. so NTR is more profitable than NOV.
Technical Analysis of Nutrien Ltd. & National Oilwell Varco, Inc.
Moving average convergence divergence (MACD) shows that Nutrien Ltd. (NYSE:NTR) is on a PRICE RELATIVITY trend While National Oilwell Varco, Inc. (NYSE:NOV) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Nutrien Ltd. was in BULLISH territory and National Oilwell Varco, Inc. was in BEARISH territory.
NTR’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While NOV’s candle is BULLISH with HIGH.
EPS Growth Rate: NTR’s 0% versus NOV’s 41%
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 Nutrien Ltd. (NYSE:NTR) is predicted at 0% while National Oilwell Varco, Inc. (NYSE:NOV) stands at 41%. These numbers suggest that NOV 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 NTR stands at 0 while NOV is at 3.2 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.2.
The values of the both ratios suggest that NOV 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 2.1 for NTR and 2.7 for NOV which means NTR has Hold rating whereas NOV 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 NTR is $58.28 which is 2.23% of its current price while NOV has price target of 41.44 which is 11.03% 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.
NTR currently has price to earning P/E ratio of 30.37 whereas NOV has 0 while the forward P/E ratio for the prior stands at 18.74 and for the later it depicts the value of 43.58.
The price to Book P/B for NTR is 1.49, Price to Sale is at 2.61 and for NOV these ratios stand at 1 and 1.78.