The shares of Noble Corporation (NYSE:NE) and Citizens Financial Group, Inc. (NYSE:CFG) were among the active stocks of the last trading sessions. Noble Corporation (NYSE:NE) declined to -1.6% closing at the price of $4.91 whereas the shares of Citizens Financial Group, Inc. (NYSE:CFG) soared 0% with the increase of 0 points closing at the price of $37.73. Noble Corporation has currently decrease -5.39% in its stock over the period of 6-months while its rival Citizens Financial Group, Inc. subtracted -10.53% 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 Noble Corporation (NYSE:NE) is -3.4% while the ROI of Citizens Financial Group, Inc. (NYSE:CFG) is 10.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NE’s EBITDA Margin is 13.25 whereas CFG’s is NOT AVAILABLE.
Both the profitability ratios suggest that Citizens Financial Group, Inc. (NYSE:CFG) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Noble Corporation (NYSE:NE) reported $-0.43/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.46/share Thus beating the analyst Estimates with a Surprise Factor of 6.5 Percent. While, Citizens Financial Group, Inc. (NYSE:CFG) reported EPS of $0.91/share in the last quarter. The analysts projected EPS of $0.9/share depicting a Surprise of 1.1 Percent.
Taking a look at Earnings per Share, Noble Corporation tends to be beating the analyst estimates more than Citizens Financial Group, Inc.. so NE is more profitable than CFG.
Technical Analysis of Noble Corporation & Citizens Financial Group, Inc.
Moving average convergence divergence (MACD) shows that Noble Corporation (NYSE:NE) is on a PRICE RELATIVITY trend While Citizens Financial Group, Inc. (NYSE:CFG) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Noble Corporation was in BEARISH territory and Citizens Financial Group, Inc. was in BULLISH territory.
NE’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While CFG’s candle is BULLISH with HIGH.
EPS Growth Rate: NE’s 5.99% versus CFG’s 15.5%
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 Noble Corporation (NYSE:NE) is predicted at 5.99% while Citizens Financial Group, Inc. (NYSE:CFG) stands at 15.5%. These numbers suggest that CFG 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 NE stands at 2.1 while CFG is at 0 whereas the debt ratio of the prior is 0.88 while the debt ratio of the later is 0.68.
The values of the both ratios suggest that NE 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 3 for NE and 2 for CFG which means NE has Hold rating whereas CFG has Buy 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 NE is $6.59 which is 25.49% of its current price while CFG has price target of 46.39 which is 18.67% 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.
NE currently has price to earning P/E ratio of 0 whereas CFG has 11.63 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 9.75.
The price to Book P/B for NE is 0.28, Price to Sale is at 1.1 and for CFG these ratios stand at 0.92 and 3.24.