The shares in Sibanye Gold Limited (NYSE: SBGL) and Target Corporation (NYSE: TGT) were among the active shares in the latest trading sessions. Sibanye Gold Limited (NYSE: SBGL) fell to -0.39% closing at the price of $ 2.55 while the shares in Target Corporation (NYSE: TGT) increased 0.21% with the increase of 0.18 points closing at the price of $ 84.41. Sibanye Gold Limited has currently reduced -18.27% in its stock over the 6 month period while its rival Target Corporation added 21.75% in the previous 6 months.
Now, we need to analyze the facts that if the shares were worthy of investors' money? Facts to analyze here are risks, profitability, returns and price trends.
Return and profitability
Profitability and return are the main reason for investment, investors are looking for profits they receive and return they should expect over time.
The first and foremost return that is taken into account when making an investment is the return or return on investment. The return is the ratio of profit to investment cost. At present, the return on Sibanye Gold Limited (NYSE: SBGL) is 0.7%, while the Target Corporation ROI (NYSE: TGT) is 13.2%. Another figure to be taken into account when analyzing the profitability of one share is its EBITDA margin, SBGL's EBITDA margin is 5.55 while TGTs are 8.14.
Both profitability states that Target Corporation (NYSE: TGT) is more appropriate investments in terms of profitability and return.
EPS and Surprise Factor
Technical analysis of Sibanye Gold Limited & Target Corporation
Moving Average Convergence Divergence (MACD) shows that Sibanye Gold Limited (NYSE: SBGL) has a PRIS RELATIVITY trend, while Target Corporation (NYSE: TGT) is on the PRIS RELATIVITY trend. The trend for the last ten days shows that Sibanye Gold Limited was in BEARISH territory and Target Corporation was on BULLS territory.
SBGL's current statistics measure that the storage light is BULLISH with high volatility. While TGT's light is BEARISH with MEDIUM.
EPS growth: SBGL's 0% against TGT's 8%
Another shareholder value can be analyzed through EPS growth. In the next 5 years, EPS growth is forecast by analysts after analyzing previous trends. The next 5-year growth for Sibanye Gold Limited (NYSE: SBGL) is expected to be 0% while Target Corporation (NYSE: TGT) stands at 8%. These figures indicate that TGT is more appropriate investments in terms of growth in EPS.
Financial risk and liquidity barriers
Current ratio and debt ratio are the two quotas that show the investor how quickly the company can pay its debt and how quickly it can cover its obligations. Current ratio SBGL stands at 1.8 while TGT is 0.8, while the debt ratio of the previous is 1.13 while the debt ratio of the latter is 1.
The values for both conditions indicate that SBGL is more appropriate investments when liquidity and risk are the biggest problem.
When making an investment, another important factor is to consider before investing the analyst's recommendation on the scale 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is sell and 5 are sold highly. Analysts recommend 1 for SBGL and 2.6 for TGT which means SBGL has a strong purchase price while TGT has Hold rating.
Another recommendation from analysts to be considered worthy is the price target. Mare price or price development does not suggest that a stock is appropriate. The price target determined by analysts should also be considered while investing as it suggests to what extent the stock will rise or fall within the near future. The price for SBGL is $ 5.57 which is 54.22% of today's price while TGT has a price target of 89.82 which is 6.02% of today's price.
Valuation is the process of determining the company's value for an investor, the valuation conditions provide insight into that value.
SBGL currently has a price to earn the P / E ratio of 48.11 while the TGT has 16.9 while the P / E ratio for the former teams at 7.08 and for the latter it shows 14.94.
The price of Book P / B for SBGL is 0.81, Price to Sales is 0.41, and for TGT these conditions are at 4.02 and 0.61.