The shares of Exelon Corporation (NYSE:EXC) and Medical Properties Trust, Inc. (NYSE:MPW) were among the active stocks of the last trading sessions. Exelon Corporation (NYSE:EXC) soared to 0.29% closing at the price of $44.31 whereas the shares of Medical Properties Trust, Inc. (NYSE:MPW) soared 1.62% with the increase of 0.26 points closing at the price of $16.33. Exelon Corporation has currently increase 10.86% in its stock over the period of 6-months while its rival Medical Properties Trust, Inc. added 23.52% 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 Exelon Corporation (NYSE:EXC) is 6.7% while the ROI of Medical Properties Trust, Inc. (NYSE:MPW) is 5.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, EXC’s EBITDA Margin is 7.81 whereas MPW’s is 14.12.
Both the profitability ratios suggest a mixed sentiment for Exelon Corporation (NYSE:EXC) and Medical Properties Trust, Inc. (NYSE:MPW).
EPS & Surprise Factor
Exelon Corporation (NYSE:EXC) reported $0.88/share EPS for the previous quarter where analysts were predicting an EPS to be $0.88/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Medical Properties Trust, Inc. (NYSE:MPW) reported EPS of $0.24/share in the last quarter. The analysts projected EPS of $0.25/share depicting a Surprise of -4 Percent.
Taking a look at Earnings per Share, Exelon Corporation tends to be beating the analyst estimates more than Medical Properties Trust, Inc.. so EXC is more profitable than MPW.
Technical Analysis of Exelon Corporation & Medical Properties Trust, Inc.
Moving average convergence divergence (MACD) shows that Exelon Corporation (NYSE:EXC) is on a PRICE RELATIVITY trend While Medical Properties Trust, Inc. (NYSE:MPW) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Exelon Corporation was in BEARISH territory and Medical Properties Trust, Inc. was in BULLISH territory.
EXC’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While MPW’s candle is BULLISH with HIGH.
EPS Growth Rate: EXC’s 5.53% versus MPW’s 6.21%
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 Exelon Corporation (NYSE:EXC) is predicted at 5.53% while Medical Properties Trust, Inc. (NYSE:MPW) stands at 6.21%. These numbers suggest that MPW 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 EXC stands at 1.3 while MPW is at 0 whereas the debt ratio of the prior is 1.18 while the debt ratio of the later is 1.27.
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 2.2 for EXC and 3 for MPW which means EXC has Hold rating whereas MPW 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 EXC is $46.58 which is 4.87% of its current price while MPW has price target of 14.5 which is -12.62% 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.
EXC currently has price to earning P/E ratio of 11.51 whereas MPW has 17.1 while the forward P/E ratio for the prior stands at 14.11 and for the later it depicts the value of 16.09.
The price to Book P/B for EXC is 1.38, Price to Sale is at 1.21 and for MPW these ratios stand at 1.56 and 7.64.