The shares of ING Group, N.V. (NYSE:ING) and Diana Containerships Inc. (NASDAQ:DCIX) were among the active stocks of the last trading sessions. ING Group, N.V. (NYSE:ING) declined to -1.83% closing at the price of $12.86 whereas the shares of Diana Containerships Inc. (NASDAQ:DCIX) declined -12.96% with the decrease of -0.21 points closing at the price of $1.41. ING Group, N.V. has currently decrease -19.57% in its stock over the period of 6-months while its rival Diana Containerships Inc. subtracted -15.57% 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 ING Group, N.V. (NYSE:ING) is 6.1% while the ROI of Diana Containerships Inc. (NASDAQ:DCIX) is -10.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ING’s EBITDA Margin is NOT AVAILABLE whereas DCIX’s is -17.54.
Both the profitability ratios suggest that ING Group, N.V. (NYSE:ING) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Technical Analysis of ING Group, N.V. & Diana Containerships Inc.
Moving average convergence divergence (MACD) shows that ING Group, N.V. (NYSE:ING) is on a PRICE RELATIVITY trend While Diana Containerships Inc. (NASDAQ:DCIX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the ING Group, N.V. was in BULLISH territory and Diana Containerships Inc. was in BEARISH territory.
ING’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While DCIX’s candle is BEARISH with HIGH.
EPS Growth Rate: ING’s 5% versus DCIX’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 ING Group, N.V. (NYSE:ING) is predicted at 5% while Diana Containerships Inc. (NASDAQ:DCIX) stands at 10%. These numbers suggest that DCIX 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 ING stands at 0 while DCIX is at 0 whereas the debt ratio of the prior is 2.72 while the debt ratio of the later is 0.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
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 for ING and 5 for DCIX which means ING has Strong Buy rating whereas DCIX has Strong Sell 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 ING is $19.3 which is 33.37% of its current price while DCIX has price target of 6.16 which is 77.11% 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.
ING currently has price to earning P/E ratio of 8.4 whereas DCIX has 0 while the forward P/E ratio for the prior stands at 7.69 and for the later it depicts the value of 0.
The price to Book P/B for ING is 0.89, Price to Sale is at 1.22 and for DCIX these ratios stand at 0.12 and 0.51.