The shares of Public Service Enterprise Group Incorporated (NYSE:PEG) and Baytex Energy Corp (NYSE:BTE) were among the active stocks of the last trading sessions. Public Service Enterprise Group Incorporated (NYSE:PEG) declined to -0.39% closing at the price of $53 whereas the shares of Baytex Energy Corp (NYSE:BTE) declined -2.71% with the decrease of -0.06 points closing at the price of $2.15. Public Service Enterprise Group Incorporated has currently increase 4.81% in its stock over the period of 6-months while its rival Baytex Energy Corp subtracted -54.55% 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 Public Service Enterprise Group Incorporated (NYSE:PEG) is 3.6% while the ROI of Baytex Energy Corp (NYSE:BTE) is -0.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PEG’s EBITDA Margin is 15.69 whereas BTE’s is 6.88.
Both the profitability ratios suggest that Public Service Enterprise Group Incorporated (NYSE:PEG) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Public Service Enterprise Group Incorporated (NYSE:PEG) reported $0.95/share EPS for the previous quarter where analysts were predicting an EPS to be $0.91/share Thus beating the analyst Estimates with a Surprise Factor of 4.4 Percent. While, Baytex Energy Corp (NYSE:BTE) reported EPS of $-0.03/share in the last quarter. The analysts projected EPS of $-0.1/share depicting a Surprise of 70 Percent.
Taking a look at Earnings per Share, Baytex Energy Corp tends to be beating the analyst estimates more than Public Service Enterprise Group Incorporated. so BTE is more profitable than PEG.
Technical Analysis of Public Service Enterprise Group Incorporated & Baytex Energy Corp
Moving average convergence divergence (MACD) shows that Public Service Enterprise Group Incorporated (NYSE:PEG) is on a PRICE RELATIVITY trend While Baytex Energy Corp (NYSE:BTE) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Public Service Enterprise Group Incorporated was in BEARISH territory and Baytex Energy Corp was in BULLISH territory.
PEG’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While BTE’s candle is BEARISH with MEDIUM.
EPS Growth Rate: PEG’s 7.26% versus BTE’s 18.2%
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 Public Service Enterprise Group Incorporated (NYSE:PEG) is predicted at 7.26% while Baytex Energy Corp (NYSE:BTE) stands at 18.2%. These numbers suggest that BTE 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 PEG stands at 0.7 while BTE is at 0 whereas the debt ratio of the prior is 1.03 while the debt ratio of the later is 0.
The values of the both ratios suggest that PEG 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 2.1 for PEG and 2.7 for BTE which means PEG has Hold rating whereas BTE 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 PEG is $56.93 which is 6.9% of its current price while BTE has price target of 3.94 which is 45.43% 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.
PEG currently has price to earning P/E ratio of 18.53 whereas BTE has 0 while the forward P/E ratio for the prior stands at 16.17 and for the later it depicts the value of 9.15.
The price to Book P/B for PEG is 1.86, Price to Sale is at 2.9 and for BTE these ratios stand at 0.35 and 1.73.