Shares of Sibanye Gold Limited (NYSE: SBGL) and Target Corporation (NYSE: TGT) were among the active stock of recent trading sessions. Sibanye Gold Limited (NYSE: SBGL) declined to -0.39% and closed at $ 2.55, while Target Corporation (NYSE: TGT) shares rose by 0.21%, with an increase of 0.18 points ended at $ 84.41. Sibanye Gold Limited declined -18.27% over a six-month period, while rival Target Corporation added 21.75% in the past six months.
Now we need to analyze the fact that if stocks were worth investor money? The facts to be analyzed are risks, returns, yields and price movements.
Repayment and profitability
Profitability and returns are the main reason for investments, investors are looking for the profit they get and return, which should be expected over a period of time.
The first and most important return that is taken into account when investing is the return on investment or the return on investment. Return on investment is the ratio between profit and investment costs. Currently, ROI Sibanye Gold Limited (NYSE: SBGL) is 0.7% and ROI Target Corporation (NYSE: TGT) is 13.2%. Another figure to consider when analyzing the profitability of the share is its EBITDA margin, while the EBITDA margin is 5.55, while the TGT is 8.14.
Thus, the profitability indicators show that Target Corporation (NYSE: TGT) is a more appropriate investment in terms of profitability and profitability.
EPS and surprise factor
Technical analysis by Sibanye Gold Limited & Target Corporation
The current average convergence difference (MACD) shows that Sibanye Gold Limited (NYSE: SBGL) is on a trend of price ratios, while Target Corporation (NYSE: TGT) is on a trend of price relative ratios. The trend of the last 10 days shows that Sibanye Gold Limited was in the territory of BEARISH and that the Target Corporation was in the BULLISH area.
Current SBGL statistics that the BULLISH candle stock is high volatility. While TGT is a BEARISH candle with MEDIUM.
EPS growth rate: SBGL is 0% compared to TGT 8%
The other shareholder value can be analyzed with the rate of EPS growth; analysts predict the growth rate of EPS in the next 5 years after analyzing previous trends. The next five-year EPS growth rate, Sibanye Gold Limited (NYSE: SBGL), is projected at 0%, while Target Corporation (NYSE: TGT) is 8%. These figures show that TGT is a more appropriate investment in terms of the growth rate of EPS.
Financial risks and liquidity problems
The current ratio and debt ratio are two ratios showing the investor how quickly the company can pay off its debt and how quickly it can cover its liabilities. Currently, the SBGL ratio is 1.8, while the TGT is 0.8, while the debt ratio is the previous 1.13, while the debt ratio is later 1.
The values of both indicators show that SBGL is a more appropriate investment when the main concern is liquidity and risk.
Recommendations by analysts
In investing, there is another major factor to consider before investing, analysts' recommendation on a scale from 1 to 5, where 1 is a strong purchase, 2 is a purchase, 3 is withheld, 4 is a sale, and 5 is a strong sale. The analyst recommends 1 for SBGL and 2.6 for TGT, which means that SBGL has a Strong Buy rating while having a TGT Hold rating.
Another analyst's recommendation, which is considered worthwhile, is a price tag. Trend of price or price trend does not indicate the suitability of the stock. The price objective set by the analyst should be taken into account when investing, as it suggests the extent to which inventory will increase or fall in the near future. The target price set for SBGL is $ 5.57, which is 54.22% of the current price, while TGT has a price target of 89.82, which is 6.02% of the current price.
Evaluation of relationships
Evaluation is the process of assessing the value of an investor's business, and valuation ratios give an insight into this value.
SBGL currently has the price to earn a P / E ratio of 48.11, while TGT has 16.9, while the forward / reverse ratio for the previous stand is 7.08, and later the value is 14.94.
The price of books P / B for SBGL is 0.81, the price for the sale is 0.41, and for TGT these ratios are 4.02 and 0.61.