The shares of Venator Materials PLC (NYSE:VNTR) and TechnipFMC plc (NYSE:FTI) were among the active stocks of the last trading sessions. Venator Materials PLC (NYSE:VNTR) soared to 3.83% closing at the price of $6.78 whereas the shares of TechnipFMC plc (NYSE:FTI) soared 0.19% with the increase of 0.05 points closing at the price of $26.73. Venator Materials PLC has currently decrease -60.7% in its stock over the period of 6-months while its rival TechnipFMC plc subtracted -20.23% 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 Venator Materials PLC (NYSE:VNTR) is 7.8% while the ROI of TechnipFMC plc (NYSE:FTI) is 3.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, VNTR’s EBITDA Margin is 4.09 whereas FTI’s is 6.16.
Both the profitability ratios suggest a mixed sentiment for Venator Materials PLC (NYSE:VNTR) and TechnipFMC plc (NYSE:FTI).
EPS & Surprise Factor
Venator Materials PLC (NYSE:VNTR) reported $0.32/share EPS for the previous quarter where analysts were predicting an EPS to be $0.33/share Thus lagging the analyst Estimates with a Surprise Factor of -3 Percent. While, TechnipFMC plc (NYSE:FTI) reported EPS of $0.31/share in the last quarter. The analysts projected EPS of $0.39/share depicting a Surprise of -20.5 Percent.
Taking a look at Earnings per Share, Venator Materials PLC tends to be beating the analyst estimates more than TechnipFMC plc. so VNTR is more profitable than FTI.
Technical Analysis of Venator Materials PLC & TechnipFMC plc
Moving average convergence divergence (MACD) shows that Venator Materials PLC (NYSE:VNTR) is on a PRICE RELATIVITY trend While TechnipFMC plc (NYSE:FTI) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Venator Materials PLC was in BEARISH territory and TechnipFMC plc was in BEARISH territory.
VNTR’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While FTI’s candle is BULLISH with LOW.
EPS Growth Rate: VNTR’s 7% versus FTI’s 13.63%
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 Venator Materials PLC (NYSE:VNTR) is predicted at 7% while TechnipFMC plc (NYSE:FTI) stands at 13.63%. These numbers suggest that FTI 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 VNTR stands at 2.3 while FTI is at 1.3 whereas the debt ratio of the prior is 0.77 while the debt ratio of the later is 0.3.
The values of the both ratios suggest that VNTR 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 2.6 for VNTR and 2.1 for FTI which means VNTR has Hold rating whereas FTI 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 VNTR is $12.29 which is 44.83% of its current price while FTI has price target of 36.04 which is 25.83% 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.
VNTR currently has price to earning P/E ratio of 34.24 whereas FTI has 34.23 while the forward P/E ratio for the prior stands at 4.96 and for the later it depicts the value of 18.27.
The price to Book P/B for VNTR is 0.74, Price to Sale is at 0.32 and for FTI these ratios stand at 0.95 and 0.94.