The shares of Marathon Patent Group, Inc. (NASDAQ:MARA) and Molson Coors Brewing Company (NYSE:TAP) were among the active stocks of the last trading sessions. Marathon Patent Group, Inc. (NASDAQ:MARA) soared to 10.89% closing at the price of $0.81 whereas the shares of Molson Coors Brewing Company (NYSE:TAP) declined -0.7% with the decrease of -0.44 points closing at the price of $62.65. Marathon Patent Group, Inc. has currently decrease -46.54% in its stock over the period of 6-months while its rival Molson Coors Brewing Company added 2.59% 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 Marathon Patent Group, Inc. (NASDAQ:MARA) is -26.7% while the ROI of Molson Coors Brewing Company (NYSE:TAP) is 5.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, MARA’s EBITDA Margin is -1.54 whereas TAP’s is 9.38.
Both the profitability ratios suggest that Molson Coors Brewing Company (NYSE:TAP) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Marathon Patent Group, Inc. (NASDAQ:MARA) reported $-0.4/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.56/share Thus beating the analyst Estimates with a Surprise Factor of 28.6 Percent. While, Molson Coors Brewing Company (NYSE:TAP) reported EPS of $1.84/share in the last quarter. The analysts projected EPS of $1.59/share depicting a Surprise of 15.7 Percent.
Taking a look at Earnings per Share, Marathon Patent Group, Inc. tends to be beating the analyst estimates more than Molson Coors Brewing Company. so MARA is more profitable than TAP.
Technical Analysis of Marathon Patent Group, Inc. & Molson Coors Brewing Company
Moving average convergence divergence (MACD) shows that Marathon Patent Group, Inc. (NASDAQ:MARA) is on a PRICE RELATIVITY trend While Molson Coors Brewing Company (NYSE:TAP) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Marathon Patent Group, Inc. was in BULLISH territory and Molson Coors Brewing Company was in BULLISH territory.
MARA’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While TAP’s candle is BEARISH with HIGH.
EPS Growth Rate: MARA’s 50% versus TAP’s 5.9%
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 Marathon Patent Group, Inc. (NASDAQ:MARA) is predicted at 50% while Molson Coors Brewing Company (NYSE:TAP) stands at 5.9%. These numbers suggest that MARA 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 MARA stands at 1.7 while TAP is at 0.6 whereas the debt ratio of the prior is 0.13 while the debt ratio of the later is 0.76.
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 for MARA and 2.5 for TAP which means MARA has Buy rating whereas TAP 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 MARA is $4 which is 79.75% of its current price while TAP has price target of 72.88 which is 14.04% 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.
MARA currently has price to earning P/E ratio of 0 whereas TAP has 11.16 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 12.51.
The price to Book P/B for MARA is 2.12, Price to Sale is at 18.81 and for TAP these ratios stand at 0.98 and 1.3.