Which is the most compelling pick right now? Nomad Foods Limited (NOMD) or Sterling Bancorp (STL)

The shares of Nomad Foods Limited (NYSE:NOMD) and Sterling Bancorp (NYSE:STL) were among the active stocks of the last trading sessions. Nomad Foods Limited (NYSE:NOMD) soared to 6.27% closing at the price of $20.5 whereas the shares of Sterling Bancorp (NYSE:STL) soared 1.51% with the increase of 0.28 points closing at the price of $18.83. Nomad Foods Limited has currently increase 16.21% in its stock over the period of 6-months while its rival Sterling Bancorp subtracted -23.14% 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 Nomad Foods Limited (NYSE:NOMD) is 6.5% while the ROI of Sterling Bancorp (NYSE:STL) is 11%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NOMD’s EBITDA Margin is 14.05 whereas STL’s is NOT AVAILABLE.

Both the profitability ratios suggest that Sterling Bancorp (NYSE:STL) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Nomad Foods Limited (NYSE:NOMD) reported $0.3/share EPS for the previous quarter where analysts were predicting an EPS to be $0.26/share Thus beating the analyst Estimates with a Surprise Factor of 15.4 Percent. While, Sterling Bancorp (NYSE:STL) reported EPS of $0.52/share in the last quarter. The analysts projected EPS of $0.52/share depicting a Surprise of 0 Percent.

Taking a look at Earnings per Share, Nomad Foods Limited tends to be beating the analyst estimates more than Sterling Bancorp. so NOMD is more profitable than STL.

Technical Analysis of Nomad Foods Limited & Sterling Bancorp

Moving average convergence divergence (MACD) shows that Nomad Foods Limited (NYSE:NOMD) is on a PRICE RELATIVITY trend While Sterling Bancorp (NYSE:STL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Nomad Foods Limited was in BULLISH territory and Sterling Bancorp was in BULLISH territory.

NOMD’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While STL’s candle is BULLISH with HIGH.

EPS Growth Rate: NOMD’s 14.61% versus STL’s 5%

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 Nomad Foods Limited (NYSE:NOMD) is predicted at 14.61% while Sterling Bancorp (NYSE:STL) stands at 5%. These numbers suggest that NOMD 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 NOMD stands at 1.4 while STL is at 0 whereas the debt ratio of the prior is 0.9 while the debt ratio of the later is 0.11.

The values of the both ratios suggest that NOMD is more suitable investment when the liquidity and risk is the main concern.

Analyst Recommendations

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 NOMD and 1.7 for STL which means NOMD has Buy rating whereas STL 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 NOMD is $24.01 which is 14.62% of its current price while STL has price target of 24.45 which is 22.99% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

NOMD currently has price to earning P/E ratio of 19.14 whereas STL has 12.8 while the forward P/E ratio for the prior stands at 14.18 and for the later it depicts the value of 8.84.

The price to Book P/B for NOMD is 1.61, Price to Sale is at 1.59 and for STL these ratios stand at 1.01 and 3.6.