The shares of Cronos Group Inc. (NASDAQ:CRON) and Oasis Petroleum Inc. (NYSE:OAS) were among the active stocks of the last trading sessions. Cronos Group Inc. (NASDAQ:CRON) declined to -8.87% closing at the price of $8.94 whereas the shares of Oasis Petroleum Inc. (NYSE:OAS) declined -6.73% with the decrease of -0.69 points closing at the price of $9.57. Cronos Group Inc. has currently increase 46.08% in its stock over the period of 6-months while its rival Oasis Petroleum Inc. subtracted -17.57% 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 Cronos Group Inc. (NASDAQ:CRON) is 0% while the ROI of Oasis Petroleum Inc. (NYSE:OAS) is 3.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CRON’s EBITDA Margin is -627110.5 whereas OAS’s is 6.72.
Both the profitability ratios suggest that Oasis Petroleum Inc. (NYSE:OAS) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Technical Analysis of Cronos Group Inc. & Oasis Petroleum Inc.
Moving average convergence divergence (MACD) shows that Cronos Group Inc. (NASDAQ:CRON) is on a PRICE RELATIVITY trend While Oasis Petroleum Inc. (NYSE:OAS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Cronos Group Inc. was in BULLISH territory and Oasis Petroleum Inc. was in BULLISH territory.
CRON’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While OAS’s candle is BEARISH with MEDIUM.
EPS Growth Rate: CRON’s 0% versus OAS’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 Cronos Group Inc. (NASDAQ:CRON) is predicted at 0% while Oasis Petroleum Inc. (NYSE:OAS) stands at 0%. These numbers suggest that OAS 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 CRON stands at 0 while OAS is at 0.5 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.8.
The values of the both ratios suggest that OAS 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 0 for CRON and 2.2 for OAS which means CRON has Strong Buy rating whereas OAS has Hold rating.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
CRON currently has price to earning P/E ratio of 894 whereas OAS has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 9.
The price to Book P/B for CRON is 9.25, Price to Sale is at 227.41 and for OAS these ratios stand at 0.87 and 1.95.