The shares of Nutrien Ltd. (NYSE:NTR) and Hershey Company (The) (NYSE:HSY) were among the active stocks of the last trading sessions. Nutrien Ltd. (NYSE:NTR) declined to -1.58% closing at the price of $56.54 whereas the shares of Hershey Company (The) (NYSE:HSY) declined -0.91% with the decrease of -0.98 points closing at the price of $107.07. Nutrien Ltd. has currently increase 15.69% in its stock over the period of 6-months while its rival Hershey Company (The) added 15.8% 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 Nutrien Ltd. (NYSE:NTR) is 0% while the ROI of Hershey Company (The) (NYSE:HSY) is 21.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NTR’s EBITDA Margin is 16.03 whereas HSY’s is 13.89.
Both the profitability ratios suggest a mixed sentiment for Nutrien Ltd. (NYSE:NTR) and Hershey Company (The) (NYSE:HSY).
EPS & Surprise Factor
Nutrien Ltd. (NYSE:NTR) reported $0.78/share EPS for the previous quarter where analysts were predicting an EPS to be $0.39/share Thus beating the analyst Estimates with a Surprise Factor of 100 Percent. While, Hershey Company (The) (NYSE:HSY) reported EPS of $1.55/share in the last quarter. The analysts projected EPS of $1.55/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Nutrien Ltd. tends to be beating the analyst estimates more than Hershey Company (The). so NTR is more profitable than HSY.
Technical Analysis of Nutrien Ltd. & Hershey Company (The)
Moving average convergence divergence (MACD) shows that Nutrien Ltd. (NYSE:NTR) is on a PRICE RELATIVITY trend While Hershey Company (The) (NYSE:HSY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Nutrien Ltd. was in BULLISH territory and Hershey Company (The) was in BULLISH territory.
NTR’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While HSY’s candle is BEARISH with LOW.
EPS Growth Rate: NTR’s 0% versus HSY’s 9.55%
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 Nutrien Ltd. (NYSE:NTR) is predicted at 0% while Hershey Company (The) (NYSE:HSY) stands at 9.55%. These numbers suggest that HSY 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 NTR stands at 0 while HSY is at 1 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 3.81.
The values of the both ratios suggest that HSY 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 NTR and 3 for HSY which means NTR has Hold rating whereas HSY 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 NTR is $58.28 which is 2.99% of its current price while HSY has price target of 101.33 which is -5.66% 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.
NTR currently has price to earning P/E ratio of 30.14 whereas HSY has 22.87 while the forward P/E ratio for the prior stands at 18.6 and for the later it depicts the value of 19.
The price to Book P/B for NTR is 1.48, Price to Sale is at 2.59 and for HSY these ratios stand at 18.18 and 2.94.