The shares of ProPetro Holding Corp. (NYSE:PUMP) and Hi-Crush Partners LP (NYSE:HCLP) were among the active stocks of the last trading sessions. ProPetro Holding Corp. (NYSE:PUMP) declined to -0.32% closing at the price of $18.61 whereas the shares of Hi-Crush Partners LP (NYSE:HCLP) soared 0.97% with the increase of 0.06 points closing at the price of $6.27. ProPetro Holding Corp. has currently decrease -2.92% in its stock over the period of 6-months while its rival Hi-Crush Partners LP subtracted -53.38% 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 ProPetro Holding Corp. (NYSE:PUMP) is 3.7% while the ROI of Hi-Crush Partners LP (NYSE:HCLP) is 9.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PUMP’s EBITDA Margin is 5.36 whereas HCLP’s is 3.39.
Both the profitability ratios suggest a mixed sentiment for ProPetro Holding Corp. (NYSE:PUMP) and Hi-Crush Partners LP (NYSE:HCLP).
EPS & Surprise Factor
ProPetro Holding Corp. (NYSE:PUMP) reported $0.53/share EPS for the previous quarter where analysts were predicting an EPS to be $0.54/share Thus lagging the analyst Estimates with a Surprise Factor of -1.9 Percent. While, Hi-Crush Partners LP (NYSE:HCLP) reported EPS of $0.59/share in the last quarter. The analysts projected EPS of $0.56/share depicting a Surprise of 5.4 Percent.
Taking a look at Earnings per Share, Hi-Crush Partners LP tends to be beating the analyst estimates more than ProPetro Holding Corp.. so HCLP is more profitable than PUMP.
Technical Analysis of ProPetro Holding Corp. & Hi-Crush Partners LP
Moving average convergence divergence (MACD) shows that ProPetro Holding Corp. (NYSE:PUMP) is on a PRICE RELATIVITY trend While Hi-Crush Partners LP (NYSE:HCLP) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the ProPetro Holding Corp. was in BULLISH territory and Hi-Crush Partners LP was in BEARISH territory.
PUMP’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While HCLP’s candle is BULLISH with HIGH.
EPS Growth Rate: PUMP’s 69.5% versus HCLP’s -1.42%
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 ProPetro Holding Corp. (NYSE:PUMP) is predicted at 69.5% while Hi-Crush Partners LP (NYSE:HCLP) stands at -1.42%. These numbers suggest that PUMP 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 PUMP stands at 1.2 while HCLP is at 2.7 whereas the debt ratio of the prior is 0.22 while the debt ratio of the later is 0.53.
The values of the both ratios suggest that HCLP 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 1.9 for PUMP and 2.9 for HCLP which means PUMP has Buy rating whereas HCLP 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 PUMP is $21.16 which is 12.05% of its current price while HCLP has price target of 11.38 which is 44.9% 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.
PUMP currently has price to earning P/E ratio of 15.42 whereas HCLP has 2.99 while the forward P/E ratio for the prior stands at 9.37 and for the later it depicts the value of 3.49.
The price to Book P/B for PUMP is 3.16, Price to Sale is at 1.09 and for HCLP these ratios stand at 0.67 and 0.77.