Which Company’s Stock is more Profitable? Plains Group Holdings, L.P. (PAGP) or Banco Santander (M?xico), S.A., Instituci?n de Ban (BSMX)

The shares of Plains Group Holdings, L.P. (NYSE:PAGP) and Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) were among the active stocks of the last trading sessions. Plains Group Holdings, L.P. (NYSE:PAGP) soared to 0.17% closing at the price of $22.99 whereas the shares of Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) soared 0.57% with the increase of 0.04 points closing at the price of $7.04. Plains Group Holdings, L.P. has currently decrease -6.7% in its stock over the period of 6-months while its rival Banco Santander (M?xico), S.A., Instituci?n de Ban subtracted -1.68% 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 Plains Group Holdings, L.P. (NYSE:PAGP) is 8.9% while the ROI of Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PAGP’s EBITDA Margin is 19.21 whereas BSMX’s is NOT AVAILABLE.

Both the profitability ratios suggest a mixed sentiment for Plains Group Holdings, L.P. (NYSE:PAGP) and Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX).

EPS & Surprise Factor

Plains Group Holdings, L.P. (NYSE:PAGP) reported $0.69/share EPS for the previous quarter where analysts were predicting an EPS to be $0.35/share Thus beating the analyst Estimates with a Surprise Factor of 97.1 Percent. While, Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) reported EPS of $0.19/share in the last quarter. The analysts projected EPS of $0.18/share depicting a Surprise of 5.6 Percent.

Taking a look at Earnings per Share, Plains Group Holdings, L.P. tends to be beating the analyst estimates more than Banco Santander (M?xico), S.A., Instituci?n de Ban. so PAGP is more profitable than BSMX.

Technical Analysis of Plains Group Holdings, L.P. & Banco Santander (M?xico), S.A., Instituci?n de Ban

Moving average convergence divergence (MACD) shows that Plains Group Holdings, L.P. (NYSE:PAGP) is on a PRICE RELATIVITY trend While Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Plains Group Holdings, L.P. was in BULLISH territory and Banco Santander (M?xico), S.A., Instituci?n de Ban was in BEARISH territory.

PAGP’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While BSMX’s candle is BULLISH with HIGH.

EPS Growth Rate: PAGP’s -10.1% versus BSMX’s 5.4%

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 Plains Group Holdings, L.P. (NYSE:PAGP) is predicted at -10.1% while Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) stands at 5.4%. These numbers suggest that BSMX 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 PAGP stands at 0.8 while BSMX is at 0 whereas the debt ratio of the prior is 5.97 while the debt ratio of the later is 0.

The values of the both ratios suggest that PAGP is more suitable investment when the liquidity and risk is the main concern.

Analyst Recommendations

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 PAGP and 2.4 for BSMX which means PAGP has Hold rating whereas BSMX 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 PAGP is $28.15 which is 18.33% of its current price while BSMX has price target of 9.78 which is 28.02% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

PAGP currently has price to earning P/E ratio of 50.42 whereas BSMX has 67.05 while the forward P/E ratio for the prior stands at 15.99 and for the later it depicts the value of 8.8.

The price to Book P/B for PAGP is 2.17, Price to Sale is at 0.12 and for BSMX these ratios stand at 1.55 and 0.