The shares of Chimera Investment Corporation (NYSE:CIM) and VICI Properties Inc. (NYSE:VICI) were among the active stocks of the last trading sessions. Chimera Investment Corporation (NYSE:CIM) soared to 1.79% closing at the price of $18.78 whereas the shares of VICI Properties Inc. (NYSE:VICI) soared 0.77% with the increase of 0.16 points closing at the price of $20.86. Chimera Investment Corporation has currently increase 3.13% in its stock over the period of 6-months while its rival VICI Properties Inc. added 3.78% 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 Chimera Investment Corporation (NYSE:CIM) is 2.6% while the ROI of VICI Properties Inc. (NYSE:VICI) is 1.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CIM’s Shows no EBITDA margin whereas VICI’s is 77.03.
Both the profitability ratios suggest that Chimera Investment Corporation (NYSE:CIM) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Chimera Investment Corporation (NYSE:CIM) reported $0.58/share EPS for the previous quarter where analysts were predicting an EPS to be $0.62/share Thus lagging the analyst Estimates with a Surprise Factor of -6.5 Percent. While, VICI Properties Inc. (NYSE:VICI) reported EPS of $0.33/share in the last quarter. The analysts projected EPS of $0.34/share depicting a Surprise of -2.9 Percent.
Taking a look at Earnings per Share, VICI Properties Inc. tends to be beating the analyst estimates more than Chimera Investment Corporation. so VICI is more profitable than CIM.
Technical Analysis of Chimera Investment Corporation & VICI Properties Inc.
Moving average convergence divergence (MACD) shows that Chimera Investment Corporation (NYSE:CIM) is on a PRICE RELATIVITY trend While VICI Properties Inc. (NYSE:VICI) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Chimera Investment Corporation was in BEARISH territory and VICI Properties Inc. was in territory.
CIM’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While VICI’s candle is with .
EPS Growth Rate: CIM’s 0.91% versus VICI’s 0%
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 Chimera Investment Corporation (NYSE:CIM) is predicted at 0.91% while VICI Properties Inc. (NYSE:VICI) stands at 0%. These numbers suggest that CIM 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 CIM stands at 0 while VICI is at 21.8 whereas the debt ratio of the prior is 4.55 while the debt ratio of the later is 0.68.
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 2.5 for CIM and 2.4 for VICI which means CIM has Hold rating whereas VICI has Hold 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 CIM is $18.7 which is -0.43% of its current price while VICI has price target of 22.43 which is 7% 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.
CIM currently has price to earning P/E ratio of 6.28 whereas VICI has 0 while the forward P/E ratio for the prior stands at 8.33 and for the later it depicts the value of 12.48.
The price to Book P/B for CIM is 0.96, Price to Sale is at 3.01 and for VICI these ratios stand at 1.18 and 38.03.