The shares of Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) and Hess Corporation (NYSE:HES) were among the active stocks of the last trading sessions. Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) declined to -8.38% closing at the price of $6.45 whereas the shares of Hess Corporation (NYSE:HES) declined -2.71% with the decrease of -1.65 points closing at the price of $59.23. Banco Santander (M?xico), S.A., Instituci?n de Ban has currently decrease -8.12% in its stock over the period of 6-months while its rival Hess Corporation subtracted -5.56% 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 Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) is 0% while the ROI of Hess Corporation (NYSE:HES) is -19.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BSMX’s EBITDA Margin is NOT AVAILABLE whereas HES’s is 10.51.
Both the profitability ratios suggest that Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Technical Analysis of Banco Santander (M?xico), S.A., Instituci?n de Ban & Hess Corporation
Moving average convergence divergence (MACD) shows that Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) is on a PRICE RELATIVITY trend While Hess Corporation (NYSE:HES) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Banco Santander (M?xico), S.A., Instituci?n de Ban was in BULLISH territory and Hess Corporation was in BULLISH territory.
BSMX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While HES’s candle is BEARISH with MEDIUM.
EPS Growth Rate: BSMX’s 5.4% versus HES’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 Banco Santander (M?xico), S.A., Instituci?n de Ban (NYSE:BSMX) is predicted at 5.4% while Hess Corporation (NYSE:HES) stands at 0%. 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 BSMX stands at 0 while HES is at 2.4 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.65.
The values of the both ratios suggest that HES 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 2.4 for BSMX and 2.5 for HES which means BSMX has Hold rating whereas HES 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 BSMX is $9.78 which is 34.05% of its current price while HES has price target of 75.29 which is 21.33% 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.
BSMX currently has price to earning P/E ratio of 61.43 whereas HES has 0 while the forward P/E ratio for the prior stands at 8.06 and for the later it depicts the value of 33.46.
The price to Book P/B for BSMX is 1.42, Price to Sale is at 0 and for HES these ratios stand at 1.77 and 2.87.