The shares of Pioneer Natural Resources Company (NYSE:PXD) and Park Hotels & Resorts Inc. (NYSE:PK) were among the active stocks of the last trading sessions. Pioneer Natural Resources Company (NYSE:PXD) declined to -3.22% closing at the price of $156.51 whereas the shares of Park Hotels & Resorts Inc. (NYSE:PK) soared 0.06% with the increase of 0.02 points closing at the price of $30.87. Pioneer Natural Resources Company has currently decrease -22.58% in its stock over the period of 6-months while its rival Park Hotels & Resorts Inc. added 2.65% 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 Pioneer Natural Resources Company (NYSE:PXD) is 1.4% while the ROI of Park Hotels & Resorts Inc. (NYSE:PK) is 3.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PXD’s EBITDA Margin is 14.66 whereas PK’s is 11.54.
Both the profitability ratios suggest a mixed sentiment for Pioneer Natural Resources Company (NYSE:PXD) and Park Hotels & Resorts Inc. (NYSE:PK).
EPS & Surprise Factor
Pioneer Natural Resources Company (NYSE:PXD) reported $2.07/share EPS for the previous quarter where analysts were predicting an EPS to be $1.67/share Thus beating the analyst Estimates with a Surprise Factor of 24 Percent. While, Park Hotels & Resorts Inc. (NYSE:PK) reported EPS of $0.26/share in the last quarter. The analysts projected EPS of $0.25/share depicting a Surprise of 4 Percent.
Taking a look at Earnings per Share, Pioneer Natural Resources Company tends to be beating the analyst estimates more than Park Hotels & Resorts Inc.. so PXD is more profitable than PK.
Technical Analysis of Pioneer Natural Resources Company & Park Hotels & Resorts Inc.
Moving average convergence divergence (MACD) shows that Pioneer Natural Resources Company (NYSE:PXD) is on a PRICE RELATIVITY trend While Park Hotels & Resorts Inc. (NYSE:PK) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Pioneer Natural Resources Company was in BULLISH territory and Park Hotels & Resorts Inc. was in BULLISH territory.
PXD’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While PK’s candle is BULLISH with HIGH.
EPS Growth Rate: PXD’s 0% versus PK’s -0.9%
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 Pioneer Natural Resources Company (NYSE:PXD) is predicted at 0% while Park Hotels & Resorts Inc. (NYSE:PK) stands at -0.9%. These numbers suggest that PXD 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 PXD stands at 1.1 while PK is at 0 whereas the debt ratio of the prior is 0.2 while the debt ratio of the later is 0.51.
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 1.9 for PXD and 2.7 for PK which means PXD has Buy rating whereas PK 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 PXD is $246.98 which is 36.63% of its current price while PK has price target of 32.67 which is 5.51% 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.
PXD currently has price to earning P/E ratio of 105.32 whereas PK has 0 while the forward P/E ratio for the prior stands at 13.64 and for the later it depicts the value of 21.
The price to Book P/B for PXD is 2.32, Price to Sale is at 3.65 and for PK these ratios stand at 1.06 and 2.26.