The shares of ONEOK, Inc. (NYSE:OKE) and Mattel, Inc. (NASDAQ:MAT) were among the active stocks of the last trading sessions. ONEOK, Inc. (NYSE:OKE) declined to -0.16% closing at the price of $63.97 whereas the shares of Mattel, Inc. (NASDAQ:MAT) declined -3.67% with the decrease of -0.53 points closing at the price of $13.92. ONEOK, Inc. has currently decrease -2.81% in its stock over the period of 6-months while its rival Mattel, Inc. subtracted -6.45% 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 ONEOK, Inc. (NYSE:OKE) is 7.3% while the ROI of Mattel, Inc. (NASDAQ:MAT) is -22.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, OKE’s EBITDA Margin is 17.34 whereas MAT’s is -45.22.
Both the profitability ratios suggest that ONEOK, Inc. (NYSE:OKE) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
ONEOK, Inc. (NYSE:OKE) reported $0.75/share EPS for the previous quarter where analysts were predicting an EPS to be $0.71/share Thus beating the analyst Estimates with a Surprise Factor of 5.6 Percent. While, Mattel, Inc. (NASDAQ:MAT) reported EPS of $0.18/share in the last quarter. The analysts projected EPS of $0.2/share depicting a Surprise of -10 Percent.
Taking a look at Earnings per Share, ONEOK, Inc. tends to be beating the analyst estimates more than Mattel, Inc.. so OKE is more profitable than MAT.
Technical Analysis of ONEOK, Inc. & Mattel, Inc.
Moving average convergence divergence (MACD) shows that ONEOK, Inc. (NYSE:OKE) is on a PRICE RELATIVITY trend While Mattel, Inc. (NASDAQ:MAT) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the ONEOK, Inc. was in BULLISH territory and Mattel, Inc. was in BULLISH territory.
OKE’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While MAT’s candle is BEARISH with HIGH.
EPS Growth Rate: OKE’s 40.17% versus MAT’s 10%
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 ONEOK, Inc. (NYSE:OKE) is predicted at 40.17% while Mattel, Inc. (NASDAQ:MAT) stands at 10%. These numbers suggest that OKE 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 OKE stands at 0.7 while MAT is at 1.7 whereas the debt ratio of the prior is 1.35 while the debt ratio of the later is 4.69.
The values of the both ratios suggest that MAT 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 2.2 for OKE and 2.8 for MAT which means OKE has Hold rating whereas MAT 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 OKE is $73.41 which is 12.86% of its current price while MAT has price target of 14.62 which is 4.79% 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.
OKE currently has price to earning P/E ratio of 24.61 whereas MAT has 0 while the forward P/E ratio for the prior stands at 22.54 and for the later it depicts the value of 207.76.
The price to Book P/B for OKE is 3.96, Price to Sale is at 2.06 and for MAT these ratios stand at 7.21 and 1.05.