The shares of Macy’s Inc (NYSE:M) and Noble Energy Inc. (NYSE:NBL) were among the active stocks of the last trading sessions. Macy’s Inc (NYSE:M) soared to 1.61% closing at the price of $37.79 whereas the shares of Noble Energy Inc. (NYSE:NBL) declined -4.47% with the decrease of -1.26 points closing at the price of $26.9. Macy’s Inc has currently increase 27.5% in its stock over the period of 6-months while its rival Noble Energy Inc. subtracted -22.83% 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 Macy’s Inc (NYSE:M) is 10.9% while the ROI of Noble Energy Inc. (NYSE:NBL) is -8.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, M’s EBITDA Margin is 5.49 whereas NBL’s is 8.7.
Both the profitability ratios suggest a mixed sentiment for Macy’s Inc (NYSE:M) and Noble Energy Inc. (NYSE:NBL).
EPS & Surprise Factor
Macy’s Inc (NYSE:M) reported $0.7/share EPS for the previous quarter where analysts were predicting an EPS to be $0.51/share Thus beating the analyst Estimates with a Surprise Factor of 37.3 Percent. While, Noble Energy Inc. (NYSE:NBL) reported EPS of $0.27/share in the last quarter. The analysts projected EPS of $0.18/share depicting a Surprise of 50 Percent.
Taking a look at Earnings per Share, Noble Energy Inc. tends to be beating the analyst estimates more than Macy’s Inc. so NBL is more profitable than M.
Technical Analysis of Macy’s Inc & Noble Energy Inc.
Moving average convergence divergence (MACD) shows that Macy’s Inc (NYSE:M) is on a PRICE RELATIVITY trend While Noble Energy Inc. (NYSE:NBL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Macy’s Inc was in BULLISH territory and Noble Energy Inc. was in BULLISH territory.
M’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While NBL’s candle is BEARISH with HIGH.
EPS Growth Rate: M’s -0.77% versus NBL’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 Macy’s Inc (NYSE:M) is predicted at -0.77% while Noble Energy Inc. (NYSE:NBL) stands at 0%. These numbers suggest that NBL 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 M stands at 1.5 while NBL is at 0.8 whereas the debt ratio of the prior is 0.94 while the debt ratio of the later is 0.
The values of the both ratios suggest that M 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 2.9 for M and 2.3 for NBL which means M has Hold rating whereas NBL 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 M is $35.71 which is -5.82% of its current price while NBL has price target of 42.92 which is 37.33% 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.
M currently has price to earning P/E ratio of 10.64 whereas NBL has 168.12 while the forward P/E ratio for the prior stands at 10.61 and for the later it depicts the value of 18.84.
The price to Book P/B for M is 1.97, Price to Sale is at 0.46 and for NBL these ratios stand at 1.25 and 2.77.