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The shares of Enbridge Inc. (NYSE: ENB) have lost more than -10.99% this year and have recently increased by 0.72% or $ 0.25 to settle at $ 34.81. On the other hand, Brixmor Property Group Inc. (NYSE: BRX) is down -6.48% since 24/07/2018. It is currently trading at $ 17.45 and posted a return of 0.69% last week.
Enbridge Inc. (NYSE: ENB) and Brixmor Property Group Inc. (NYSE: BRX) are the two most active shares in the pipeline industry. based on the trading volumes of today. We will compare the two companies according to the strength of various parameters, including growth, profitability, risk, return and valuation to determine if one is a better investment than the other. ;other.
Growth
Searching a business is the ability to increase profits at a high compound rate over time. Analysts predict that ENB will increase its profits at an annual rate of 3.09% over the next 5 years. Comparatively, BRX is expected to grow at an annual rate of -5.09%. All things being equal, the higher growth rate of the ENB would imply a greater potential for capital appreciation.
Profitability and Returns
A high growth rate is not necessarily valuable to investors. In fact, companies that over-invest in low-yield projects simply to achieve a high growth rate may actually destroy shareholder value. Profitability and returns are a measure of the quality of the company and its growth opportunities. We will use the EBITDA margin and the return on invested capital (ROIC) to measure it, compared to a 68.35% EBITDA margin for Brixmor Property Group Inc. (BRX). The return on investment of ENB is 1.90% while BRX has a ROI of 5.30%. The interpretation is that the BRX business generates a higher return on investment than the ENB.
Cash Flow
The value of a stock is simply the discounted value of its future free cash flow. Free cash flow ("FCF") per BNB share for the last twelve months was +0.42. Comparatively, BRX's free cash flow per share was -0.12. In terms of percentage of sales, ENB's free cash flow was 2.09% while BRX converted -2.83% of its revenue into cash flow. This means that for a given level of sales, ENB can generate more free cash flow for investors.
Liquidity and Financial Risk
The debt ratio of ENB is 1.24 against a D / E of 1.96 BRX. BRX is therefore the most solvent of the two companies and presents a lower financial risk.
Estimate
The ENB trades at a P / E before 18.17, a P / B of 1.45, and a P / S of 1.69, compared with a P / E before 21.76, a P / B of 1.85, and a P / S of 4.16 for BRX. ENB is the cheapest of the two stocks on the basis of profits, book value and sales. Since profits are the most important for investors, badysts tend to put more weight on the price / earnings ratio.
Targets and opinions on badyst prices
the stock is accurately valued. To get an idea of "value", we have to compare the current price to a measure of intrinsic value as a price target. The ENB is currently valued at -22.7% at its one-year price target of 45.03. Comparatively, BRX is -3.43% compared to its target price of 18.07. This suggests that the ENB is the best investment over the next year
Risk and Volatility
Beta is a measure that investors frequently use to badyze the systematic risk of investing. ;an action. A beta greater than 1 implies a volatility higher than the market average. Conversely, a security with a beta lower than 1 is considered less risky than the overall market. The ENB has a beta of 0.61 and the beta of BRX is 0.40. BRX shares are therefore the least volatile of the two stocks
Insider trading and investor sentiment
Comparing the number of shares sold short to float is a method that badysts often use to get an idea of investor sentiment The ENB has a short ratio of 7.78 against a short interest of 1.44 for BRX. This means that the market is currently less bearish on BRX's outlook.
Summary
Enbridge Inc. (NYSE: ENB) defeat Brixmor Property Group Inc. (NYSE: BRX) out of a total of 9 of 14 factors compared between both stocks. ENB is growing rapidly, has higher cash flow per share, has a higher currency conversion rate, higher liquidity and lower financial risk. In terms of valuation, ENB is the cheapest of the two stocks on the basis of profits, book value and sales, ENB is more undervalued compared to its price target.
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