The shares of ADT Inc. (NYSE:ADT) and New York Community Bancorp, Inc. (NYSE:NYCB) were among the active stocks of the last trading sessions. ADT Inc. (NYSE:ADT) soared to 9.16% closing at the price of $8.1 whereas the shares of New York Community Bancorp, Inc. (NYSE:NYCB) declined -0.51% with the decrease of -0.05 points closing at the price of $9.78. ADT Inc. has currently increase 9.46% in its stock over the period of 6-months while its rival New York Community Bancorp, Inc. subtracted -16.27% 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 ADT Inc. (NYSE:ADT) is 7.1% while the ROI of New York Community Bancorp, Inc. (NYSE:NYCB) is 12.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ADT’s EBITDA Margin is 7.01 whereas NYCB’s is NOT AVAILABLE.
Both the profitability ratios suggest that New York Community Bancorp, Inc. (NYSE:NYCB) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
ADT Inc. (NYSE:ADT) reported $-0.02/share EPS for the previous quarter where analysts were predicting an EPS to be $0.26/share Thus lagging the analyst Estimates with a Surprise Factor of -107.7 Percent. While, New York Community Bancorp, Inc. (NYSE:NYCB) reported EPS of $0.2/share in the last quarter. The analysts projected EPS of $0.2/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, New York Community Bancorp, Inc. tends to be beating the analyst estimates more than ADT Inc.. so NYCB is more profitable than ADT.
Technical Analysis of ADT Inc. & New York Community Bancorp, Inc.
Moving average convergence divergence (MACD) shows that ADT Inc. (NYSE:ADT) is on a PRICE RELATIVITY trend While New York Community Bancorp, Inc. (NYSE:NYCB) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the ADT Inc. was in BULLISH territory and New York Community Bancorp, Inc. was in BULLISH territory.
ADT’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While NYCB’s candle is NEUTRAL with MEDIUM.
EPS Growth Rate: ADT’s 16.15% versus NYCB’s 0%
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 ADT Inc. (NYSE:ADT) is predicted at 16.15% while New York Community Bancorp, Inc. (NYSE:NYCB) stands at 0%. These numbers suggest that ADT 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 ADT stands at 0.9 while NYCB is at 0 whereas the debt ratio of the prior is 2.05 while the debt ratio of the later is 0.06.
The values of the both ratios suggest that ADT 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 1.9 for ADT and 2.8 for NYCB which means ADT has Buy rating whereas NYCB 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 ADT is $13.31 which is 39.14% of its current price while NYCB has price target of 10.72 which is 8.77% 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.
ADT currently has price to earning P/E ratio of 19.19 whereas NYCB has 12.64 while the forward P/E ratio for the prior stands at 7.34 and for the later it depicts the value of 12.3.
The price to Book P/B for ADT is 1.3, Price to Sale is at 1.37 and for NYCB these ratios stand at 0.76 and 2.93.