The shares of Vistra Energy Corp. (NYSE:VST) and America Movil, S.A.B. de C.V. (NYSE:AMX) were among the active stocks of the last trading sessions. Vistra Energy Corp. (NYSE:VST) declined to -1.96% closing at the price of $24.48 whereas the shares of America Movil, S.A.B. de C.V. (NYSE:AMX) declined -1.09% with the decrease of -0.17 points closing at the price of $15.37. Vistra Energy Corp. has currently increase 6.48% in its stock over the period of 6-months while its rival America Movil, S.A.B. de C.V. subtracted -10.59% 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 Vistra Energy Corp. (NYSE:VST) is 1.3% while the ROI of America Movil, S.A.B. de C.V. (NYSE:AMX) is 8.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, VST’s EBITDA Margin is 22.82 whereas AMX’s is 5.56.
Both the profitability ratios suggest a mixed sentiment for Vistra Energy Corp. (NYSE:VST) and America Movil, S.A.B. de C.V. (NYSE:AMX).
EPS & Surprise Factor
Vistra Energy Corp. (NYSE:VST) reported $0.6/share EPS for the previous quarter where analysts were predicting an EPS to be $0.87/share Thus lagging the analyst Estimates with a Surprise Factor of -31 Percent. While, America Movil, S.A.B. de C.V. (NYSE:AMX) reported EPS of $0.3/share in the last quarter. The analysts projected EPS of $0.35/share depicting a Surprise of -14.3 Percent.
Taking a look at Earnings per Share, America Movil, S.A.B. de C.V. tends to be beating the analyst estimates more than Vistra Energy Corp.. so AMX is more profitable than VST.
Technical Analysis of Vistra Energy Corp. & America Movil, S.A.B. de C.V.
Moving average convergence divergence (MACD) shows that Vistra Energy Corp. (NYSE:VST) is on a PRICE RELATIVITY trend While America Movil, S.A.B. de C.V. (NYSE:AMX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Vistra Energy Corp. was in BULLISH territory and America Movil, S.A.B. de C.V. was in BULLISH territory.
VST’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While AMX’s candle is BEARISH with HIGH.
EPS Growth Rate: VST’s 12.6% versus AMX’s 20.49%
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 Vistra Energy Corp. (NYSE:VST) is predicted at 12.6% while America Movil, S.A.B. de C.V. (NYSE:AMX) stands at 20.49%. These numbers suggest that AMX 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 VST stands at 1.1 while AMX is at 0.8 whereas the debt ratio of the prior is 1.38 while the debt ratio of the later is 4.42.
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 1.7 for VST and 2.5 for AMX which means VST has Buy rating whereas AMX 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 VST is $29.27 which is 16.36% of its current price while AMX has price target of 18.39 which is 16.42% 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.
VST currently has price to earning P/E ratio of 0 whereas AMX has 38.52 while the forward P/E ratio for the prior stands at 10.47 and for the later it depicts the value of 13.42.
The price to Book P/B for VST is 1.55, Price to Sale is at 2.13 and for AMX these ratios stand at 7.02 and 0.99.