Which Stock will give you a Nice Return? TripAdvisor, Inc. (TRIP) or QEP Resources, Inc. (QEP)

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The shares of TripAdvisor, Inc. (NASDAQ:TRIP) and QEP Resources, Inc. (NYSE:QEP) were among the active stocks of the last trading sessions. TripAdvisor, Inc. (NASDAQ:TRIP) soared to 15.26% closing at the price of $66.93 whereas the shares of QEP Resources, Inc. (NYSE:QEP) declined -6.43% with the decrease of -0.63 points closing at the price of $9.17. TripAdvisor, Inc. has currently increase 36.62% in its stock over the period of 6-months while its rival QEP Resources, Inc. subtracted -27.74% 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 TripAdvisor, Inc. (NASDAQ:TRIP) is 4.3% while the ROI of QEP Resources, Inc. (NYSE:QEP) is 6.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TRIP’s EBITDA Margin is 34.79 whereas QEP’s is 5.17.

Both the profitability ratios suggest a mixed sentiment for TripAdvisor, Inc. (NASDAQ:TRIP) and QEP Resources, Inc. (NYSE:QEP).

EPS & Surprise Factor

TripAdvisor, Inc. (NASDAQ:TRIP) reported $0.72/share EPS for the previous quarter where analysts were predicting an EPS to be $0.48/share Thus beating the analyst Estimates with a Surprise Factor of 50 Percent. While, QEP Resources, Inc. (NYSE:QEP) reported EPS of $0.17/share in the last quarter. The analysts projected EPS of $-0.01/share depicting a Surprise of 1800 Percent.

Taking a look at Earnings per Share, QEP Resources, Inc. tends to be beating the analyst estimates more than TripAdvisor, Inc.. so QEP is more profitable than TRIP.

Technical Analysis of TripAdvisor, Inc. & QEP Resources, Inc.

Moving average convergence divergence (MACD) shows that TripAdvisor, Inc. (NASDAQ:TRIP) is on a PRICE RELATIVITY trend While QEP Resources, Inc. (NYSE:QEP) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the TripAdvisor, Inc. was in BULLISH territory and QEP Resources, Inc. was in BULLISH territory.

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

EPS Growth Rate: TRIP’s 16.28% versus QEP’s -5.69%

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 TripAdvisor, Inc. (NASDAQ:TRIP) is predicted at 16.28% while QEP Resources, Inc. (NYSE:QEP) stands at -5.69%. These numbers suggest that TRIP 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 TRIP stands at 1.6 while QEP is at 0.3 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.79.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

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 3.1 for TRIP and 2.4 for QEP which means TRIP has Sell rating whereas QEP 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 TRIP is $48.35 which is -38.43% of its current price while QEP has price target of 15.14 which is 39.43% 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.

TRIP currently has price to earning P/E ratio of 183.87 whereas QEP has 0 while the forward P/E ratio for the prior stands at 42.07 and for the later it depicts the value of 21.23.

The price to Book P/B for TRIP is 6.85, Price to Sale is at 5.82 and for QEP these ratios stand at 0.65 and 1.21.