The shares of WildHorse Resource Development Corporation (NYSE:WRD) and Crown Castle International Corporation (NYSE:CCI) were among the active stocks of the last trading sessions. WildHorse Resource Development Corporation (NYSE:WRD) declined to -3.43% closing at the price of $21.7 whereas the shares of Crown Castle International Corporation (NYSE:CCI) declined -0.23% with the decrease of -0.26 points closing at the price of $111.47. WildHorse Resource Development Corporation has currently decrease -21.09% in its stock over the period of 6-months while its rival Crown Castle International Corporation added 7.59% 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 WildHorse Resource Development Corporation (NYSE:WRD) is 5.3% while the ROI of Crown Castle International Corporation (NYSE:CCI) is 3.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, WRD’s EBITDA Margin is 11.86 whereas CCI’s is 21.04.
Both the profitability ratios suggest a mixed sentiment for WildHorse Resource Development Corporation (NYSE:WRD) and Crown Castle International Corporation (NYSE:CCI).
EPS & Surprise Factor
WildHorse Resource Development Corporation (NYSE:WRD) reported $0.38/share EPS for the previous quarter where analysts were predicting an EPS to be $0.48/share Thus lagging the analyst Estimates with a Surprise Factor of -20.8 Percent. While, Crown Castle International Corporation (NYSE:CCI) reported EPS of $0.33/share in the last quarter. The analysts projected EPS of $0.27/share depicting a Surprise of 22.2 Percent.
Taking a look at Earnings per Share, Crown Castle International Corporation tends to be beating the analyst estimates more than WildHorse Resource Development Corporation. so CCI is more profitable than WRD.
Technical Analysis of WildHorse Resource Development Corporation & Crown Castle International Corporation
Moving average convergence divergence (MACD) shows that WildHorse Resource Development Corporation (NYSE:WRD) is on a PRICE RELATIVITY trend While Crown Castle International Corporation (NYSE:CCI) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the WildHorse Resource Development Corporation was in BULLISH territory and Crown Castle International Corporation was in BULLISH territory.
WRD’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While CCI’s candle is BEARISH with HIGH.
EPS Growth Rate: WRD’s 50% versus CCI’s 19.67%
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 WildHorse Resource Development Corporation (NYSE:WRD) is predicted at 50% while Crown Castle International Corporation (NYSE:CCI) stands at 19.67%. These numbers suggest that WRD 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 WRD stands at 0.4 while CCI is at 0.9 whereas the debt ratio of the prior is 0.92 while the debt ratio of the later is 1.27.
The values of the both ratios suggest that CCI 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 1.8 for WRD and 2.2 for CCI which means WRD has Buy rating whereas CCI 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 WRD is $34.29 which is 36.72% of its current price while CCI has price target of 119.93 which is 7.05% 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.
WRD currently has price to earning P/E ratio of 0 whereas CCI has 100.06 while the forward P/E ratio for the prior stands at 8.56 and for the later it depicts the value of 68.3.
The price to Book P/B for WRD is 2.12, Price to Sale is at 3 and for CCI these ratios stand at 3.68 and 8.82.