The shares of Valero Energy Partners LP (NYSE:VLP) and Portola Pharmaceuticals, Inc. (NASDAQ:PTLA) were among the active stocks of the last trading sessions. Valero Energy Partners LP (NYSE:VLP) declined to -0.1% closing at the price of $41.9 whereas the shares of Portola Pharmaceuticals, Inc. (NASDAQ:PTLA) soared 21.41% with the increase of 4.08 points closing at the price of $23.14. Valero Energy Partners LP has currently increase 6.02% in its stock over the period of 6-months while its rival Portola Pharmaceuticals, Inc. subtracted -43.77% 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 Valero Energy Partners LP (NYSE:VLP) is 18.4% while the ROI of Portola Pharmaceuticals, Inc. (NASDAQ:PTLA) is -60.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, VLP’s EBITDA Margin is 11.3 whereas PTLA’s is -3.3.
Both the profitability ratios suggest that Valero Energy Partners LP (NYSE:VLP) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Valero Energy Partners LP (NYSE:VLP) reported $0.75/share EPS for the previous quarter where analysts were predicting an EPS to be $0.66/share Thus beating the analyst Estimates with a Surprise Factor of 13.6 Percent. While, Portola Pharmaceuticals, Inc. (NASDAQ:PTLA) reported EPS of $-1.08/share in the last quarter. The analysts projected EPS of $-1.62/share depicting a Surprise of 33.3 Percent.
Taking a look at Earnings per Share, Portola Pharmaceuticals, Inc. tends to be beating the analyst estimates more than Valero Energy Partners LP. so PTLA is more profitable than VLP.
Technical Analysis of Valero Energy Partners LP & Portola Pharmaceuticals, Inc.
Moving average convergence divergence (MACD) shows that Valero Energy Partners LP (NYSE:VLP) is on a PRICE RELATIVITY trend While Portola Pharmaceuticals, Inc. (NASDAQ:PTLA) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Valero Energy Partners LP was in BEARISH territory and Portola Pharmaceuticals, Inc. was in BULLISH territory.
VLP’s current statistics gauge that the stock candle is BEARISH with LOW volatility. While PTLA’s candle is BEARISH with HIGH.
EPS Growth Rate: VLP’s -0.8% versus PTLA’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 Valero Energy Partners LP (NYSE:VLP) is predicted at -0.8% while Portola Pharmaceuticals, Inc. (NASDAQ:PTLA) stands at 0%. These numbers suggest that PTLA 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 VLP stands at 4.1 while PTLA is at 6.7 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.95.
The values of the both ratios suggest that PTLA 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 2.8 for VLP and 1.9 for PTLA which means VLP has Hold rating whereas PTLA has Buy 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 VLP is $42.1 which is 0.48% of its current price while PTLA has price target of 44.83 which is 48.38% 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.
VLP currently has price to earning P/E ratio of 14.73 whereas PTLA has 0 while the forward P/E ratio for the prior stands at 13.52 and for the later it depicts the value of 0.
The price to Book P/B for VLP is 11.14, Price to Sale is at 5.54 and for PTLA these ratios stand at 7.01 and 66.21.