The shares of Sabra Health Care REIT, Inc. (NASDAQ:SBRA) and Ultra Petroleum Corp. (NASDAQ:UPL) were among the active stocks of the last trading sessions. Sabra Health Care REIT, Inc. (NASDAQ:SBRA) declined to -1.38% closing at the price of $21.39 whereas the shares of Ultra Petroleum Corp. (NASDAQ:UPL) declined -1.27% with the decrease of -0.02 points closing at the price of $1.56. Sabra Health Care REIT, Inc. has currently increase 6.1% in its stock over the period of 6-months while its rival Ultra Petroleum Corp. subtracted -10.34% 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 Sabra Health Care REIT, Inc. (NASDAQ:SBRA) is 1.5% while the ROI of Ultra Petroleum Corp. (NASDAQ:UPL) is 52%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SBRA’s EBITDA Margin is 13.67 whereas UPL’s is 4.76.
Both the profitability ratios suggest a mixed sentiment for Sabra Health Care REIT, Inc. (NASDAQ:SBRA) and Ultra Petroleum Corp. (NASDAQ:UPL).
EPS & Surprise Factor
Sabra Health Care REIT, Inc. (NASDAQ:SBRA) reported $0.2/share EPS for the previous quarter where analysts were predicting an EPS to be $0.33/share Thus lagging the analyst Estimates with a Surprise Factor of -39.4 Percent. While, Ultra Petroleum Corp. (NASDAQ:UPL) reported EPS of $0.17/share in the last quarter. The analysts projected EPS of $0.14/share depicting a Surprise of 21.4 Percent.
Taking a look at Earnings per Share, Ultra Petroleum Corp. tends to be beating the analyst estimates more than Sabra Health Care REIT, Inc.. so UPL is more profitable than SBRA.
Technical Analysis of Sabra Health Care REIT, Inc. & Ultra Petroleum Corp.
Moving average convergence divergence (MACD) shows that Sabra Health Care REIT, Inc. (NASDAQ:SBRA) is on a PRICE RELATIVITY trend While Ultra Petroleum Corp. (NASDAQ:UPL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Sabra Health Care REIT, Inc. was in BEARISH territory and Ultra Petroleum Corp. was in BULLISH territory.
SBRA’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While UPL’s candle is BEARISH with HIGH.
EPS Growth Rate: SBRA’s 6% versus UPL’s 20.4%
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 Sabra Health Care REIT, Inc. (NASDAQ:SBRA) is predicted at 6% while Ultra Petroleum Corp. (NASDAQ:UPL) stands at 20.4%. These numbers suggest that UPL 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 SBRA stands at 0 while UPL is at 0.5 whereas the debt ratio of the prior is 1.01 while the debt ratio of the later is 0.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
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 2.6 for SBRA and 2.8 for UPL which means SBRA has Hold rating whereas UPL 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 SBRA is $23.46 which is 8.82% of its current price while UPL has price target of 2.42 which is 35.54% 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.
SBRA currently has price to earning P/E ratio of 10.2 whereas UPL has 0 while the forward P/E ratio for the prior stands at 16.35 and for the later it depicts the value of 3.
The price to Book P/B for SBRA is 1.12, Price to Sale is at 6.33 and for UPL these ratios stand at 0 and 0.36.