The shares of Camber Energy, Inc. have increased by more than 4.75% this year alone. The shares recently went up by 6.58% or $0.01 and now trades at $0.13. The shares of Voya Financial, Inc. (NYSE:VOYA), has jumped by 3.48% year to date as of 02/14/2018. The shares currently trade at $51.19 and have been able to report a change of 5.18% over the past one week.
The stock of Camber Energy, Inc. and Voya Financial, Inc. were two of the most active stocks on Wednesday. Investors seem to be very interested in what happens to the stocks of these two companies but do investors favor one over the other? We will analyze the growth, profitability, risk, valuation, and insider trends of both companies and see which one investors prefer.
Profitability and Returns
Growth alone cannot be used to see if the company will be valuable. Shareholders will be the losers if a company invest in ventures that aren’t profitable enough to support upbeat growth. In order for us to accurately measure profitability and return, we will be using the EBITDA margin and Return on Investment (ROI), which balances the difference in capital structure. The ROI of CEI is -245.80% while that of VOYA is -0.10%. These figures suggest that VOYA ventures generate a higher ROI than that of CEI.
The value of a stock is ultimately determined by the amount of cash flow that the investors have available. Over the last 12 months, CEI’s free cash flow per share is a negative -0.01, while that of VOYA is positive 5.09.
CEI currently trades at a P/S of 1.11 while VOYA trades at a forward P/E of 12.16, a P/B of 0.67, and a P/S of 0.93. This means that looking at the earnings, book values and sales basis, VOYA is the cheaper one. It is very obvious that earnings are the most important factors to investors, thus analysts are most likely to place their bet on the P/E.
Analyst Price Targets and Opinions
The mistake some people make is that they think a cheap stock has more value to it. In order to know the value of a stock, there is need to compare its current price to its likely trading price in the future. The price of CEI is currently at a -87% to its one-year price target of 1.00. Looking at its rival pricing, VOYA is at a -11.74% relative to its price target of 58.00. This figure implies that over the next one year, VOYA is a better investment.
When looking at the investment recommendation on say a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell), CEI is given a 4.00 while 1.90 placed for VOYA. This means that analysts are more bullish on the outlook for CEI stocks.
Insider Activity and Investor Sentiment
Short interest or otherwise called the percentage of a stock’s tradable shares currently being shorted is another data that investors use to get a handle on sentiment. The short ratio for CEI is 1.21 while that of VOYA is just 8.44. This means that analysts are more bullish on the forecast for CEI stock.
The stock of Voya Financial, Inc. defeats that of Camber Energy, Inc. when the two are compared, with VOYA taking 6 out of the total factors that were been considered. VOYA happens to be more profitable, generates a higher ROI, has higher cash flow per share, higher liquidity and has a lower financial risk. When looking at the stock valuation, VOYA is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for VOYA is better on when it is viewed on short interest.