The shares of Acadia Healthcare Company, Inc. (NASDAQ:ACHC) and Carnival Corporation (NYSE:CCL) were among the active stocks of the last trading sessions. Acadia Healthcare Company, Inc. (NASDAQ:ACHC) soared to 1.98% closing at the price of $41.72 whereas the shares of Carnival Corporation (NYSE:CCL) declined -0.94% with the decrease of -0.55 points closing at the price of $58.12. Acadia Healthcare Company, Inc. has currently increase 0.02% in its stock over the period of 6-months while its rival Carnival Corporation subtracted -9.22% 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 Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is 6.1% while the ROI of Carnival Corporation (NYSE:CCL) is 8.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ACHC’s EBITDA Margin is 11.38 whereas CCL’s is 9.07.
Both the profitability ratios suggest a mixed sentiment for Acadia Healthcare Company, Inc. (NASDAQ:ACHC) and Carnival Corporation (NYSE:CCL).
EPS & Surprise Factor
Acadia Healthcare Company, Inc. (NASDAQ:ACHC) reported $0.55/share EPS for the previous quarter where analysts were predicting an EPS to be $0.64/share Thus lagging the analyst Estimates with a Surprise Factor of -14.1 Percent. While, Carnival Corporation (NYSE:CCL) reported EPS of $2.36/share in the last quarter. The analysts projected EPS of $2.32/share depicting a Surprise of 1.7 Percent.
Taking a look at Earnings per Share, Carnival Corporation tends to be beating the analyst estimates more than Acadia Healthcare Company, Inc.. so CCL is more profitable than ACHC.
Technical Analysis of Acadia Healthcare Company, Inc. & Carnival Corporation
Moving average convergence divergence (MACD) shows that Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is on a PRICE RELATIVITY trend While Carnival Corporation (NYSE:CCL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Acadia Healthcare Company, Inc. was in BULLISH territory and Carnival Corporation was in BULLISH territory.
ACHC’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While CCL’s candle is BULLISH with HIGH.
EPS Growth Rate: ACHC’s 11.56% versus CCL’s 12.2%
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 Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is predicted at 11.56% while Carnival Corporation (NYSE:CCL) stands at 12.2%. These numbers suggest that CCL 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 ACHC stands at 1.2 while CCL is at 0.2 whereas the debt ratio of the prior is 1.21 while the debt ratio of the later is 0.39.
The values of the both ratios suggest that ACHC 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 ACHC and 2 for CCL which means ACHC has Hold rating whereas CCL 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 ACHC is $43.38 which is 3.83% of its current price while CCL has price target of 72.83 which is 20.2% 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.
ACHC currently has price to earning P/E ratio of 18.74 whereas CCL has 12.91 while the forward P/E ratio for the prior stands at 15.17 and for the later it depicts the value of 12.48.
The price to Book P/B for ACHC is 1.37, Price to Sale is at 1.25 and for CCL these ratios stand at 1.66 and 2.18.