The shares of Medical Properties Trust, Inc. (NYSE:MPW) and Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) were among the active stocks of the last trading sessions. Medical Properties Trust, Inc. (NYSE:MPW) declined to -0.9% closing at the price of $16.59 whereas the shares of Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) declined -5.44% with the decrease of -1.11 points closing at the price of $19.29. Medical Properties Trust, Inc. has currently increase 23.9% in its stock over the period of 6-months while its rival Carrizo Oil & Gas, Inc. subtracted -22.87% 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 Medical Properties Trust, Inc. (NYSE:MPW) is 5.5% while the ROI of Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) is 11.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, MPW’s EBITDA Margin is 14.12 whereas CRZO’s is 7.68.
Both the profitability ratios suggest a mixed sentiment for Medical Properties Trust, Inc. (NYSE:MPW) and Carrizo Oil & Gas, Inc. (NASDAQ:CRZO).
EPS & Surprise Factor
Medical Properties Trust, Inc. (NYSE:MPW) reported $0.24/share EPS for the previous quarter where analysts were predicting an EPS to be $0.25/share Thus lagging the analyst Estimates with a Surprise Factor of -4 Percent. While, Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) reported EPS of $0.94/share in the last quarter. The analysts projected EPS of $0.79/share depicting a Surprise of 19 Percent.
Taking a look at Earnings per Share, Carrizo Oil & Gas, Inc. tends to be beating the analyst estimates more than Medical Properties Trust, Inc.. so CRZO is more profitable than MPW.
Technical Analysis of Medical Properties Trust, Inc. & Carrizo Oil & Gas, Inc.
Moving average convergence divergence (MACD) shows that Medical Properties Trust, Inc. (NYSE:MPW) is on a PRICE RELATIVITY trend While Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Medical Properties Trust, Inc. was in BULLISH territory and Carrizo Oil & Gas, Inc. was in BULLISH territory.
MPW’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While CRZO’s candle is BEARISH with HIGH.
EPS Growth Rate: MPW’s 6.21% versus CRZO’s 40.85%
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 Medical Properties Trust, Inc. (NYSE:MPW) is predicted at 6.21% while Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) stands at 40.85%. These numbers suggest that CRZO 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 MPW stands at 0 while CRZO is at 0.3 whereas the debt ratio of the prior is 1.27 while the debt ratio of the later is 3.52.
The values of the both ratios suggest that CRZO 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 3 for MPW and 2 for CRZO which means MPW has Hold rating whereas CRZO has Buy 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 MPW is $14.5 which is -14.41% of its current price while CRZO has price target of 34.87 which is 44.68% 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.
MPW currently has price to earning P/E ratio of 17.37 whereas CRZO has 60.47 while the forward P/E ratio for the prior stands at 16.34 and for the later it depicts the value of 4.27.
The price to Book P/B for MPW is 1.58, Price to Sale is at 7.76 and for CRZO these ratios stand at 3.71 and 2.03.