The shares of Denbury Resources Inc. (NYSE: DNR) and Harmony Gold Mining Company Limited (NYSE: HMY) were among the active shares of the last trading sessions. Denbury Resources Inc. (NYSE: DNR) dropped to -2.34% closing at the price of $ 4.18 while shares of Harmony Gold Mining Company Limited (NYSE: HMY) soared 2.53% with the increase of 0.04 points at the price of $ 1.62. Denbury Resources Inc. currently has an increase of 143.02% in its shares during the 6-month period, while its rival Harmony Gold Mining Company Limited subtracted -4.14% in the last 6 months.
Now we have to analyze the facts that if the stock deserved the money of the investors. The facts analyzed here are risks, profitability, yields and price trends.
Returns and profitability
Main profitability and profitability are the main reasons for investment. Investors look for profits that they obtain and return they must wait for the period of time.
The first and most important return that is considered when making an investment is the return on investment or the return on investment. ROI is the relationship between the benefit and the cost of the investment. Currently, the ROI of Denbury Resources Inc. (NYSE: DNR) is 5.6%, while the return on investment of Harmony Gold Mining Company Limited (NYSE: HMY) is 1%. Another figure that should be considered when analyzing the performance of an action is its EBITDA margin, the EBITDA margin of DNR is 13.32, while HMY is 2.85.
Both profitability indices suggest that Denbury Resources Inc. (NYSE: DNR) is more suitable investment in terms of profitability and performance.
EPS & Surprise Factor
Technical Analysis by Denbury Resources Inc. and Harmony Gold Mining Company Limited
The Moving Average Convergence Divergence (MACD) shows that Denbury Resources Inc. (NYSE: NYSE: DNR) is in a PRICE RELATIONSHIP trend, while Harmony Gold Mining Company Limited (NYSE: HMY) is trending PRICE RELATIONSHIP. The trend of the last 10 days shows that Denbury Resources Inc. was in BULLISH territory and Harmony Gold Mining Company Limited was in BEARISH territory.
Current DNR statistics determine that the candle in existence is BEARISH with low volatility. While the HMY candle is BULLISH with MEDIUM.
EPS growth rate: DNR 0% versus HMY & # 39; s 0%
Another value for the shareholder can be analyzed through the growth rate of EPS; Analysts predict the growth rate for the next 5 years after analyzing previous trends. The next 5-year EPS growth rate from Denbury Resources Inc. (NYSE: DNR) is forecast at 0%, while Harmony Gold Mining Company Limited (NYSE: HMY) is at 0%. These figures suggest that HMY is a more appropriate investment in terms of EPS growth rate.
Financial risk and liquidity concerns
The current index and the debt ratio are the two reasons that show the investor how fast the company can pay its debt and how quickly it can cover its obligations . The current ratio of DNR is 0.5 while HMY is 2.2 while the debt ratio is 4.42 while the debt ratio is 0.09.
The values of both proportions suggest that one is more liquid and another investment is more risk-free.
When making an investment, another main factor to consider before investing is the analyst's recommendation on a scale of 1 to 5 where 1 is strong, 2 is buying, 3 is hold, 4 is Sell and 5 is strong sell. Analysts recommend 2.8 for DNR and 3 for HMY, which means that DNR has a Maintain rating, while HMY has a Maintain rating.
Another recommendation of the analyst that should be considered worthy is the target price. The price of the mare or the price trend does not suggest the suitability of an action. The price target set by the analyst should also be considered when investing, as it suggests to what extent the stock will rise or fall in the near future. The target price set for DNR is $ 3.41, which is -22.58% of its current price, while HMY has a target price of 2.32 which is 30.17% of its current price.
The valuation is a process to determine the value of the company for an investor, the valuation proportions give an idea of that solvency.
DNR currently has a P / E price / gain ratio of 37.32, while HMY has 0 while the anticipated P / E ratio for the previous positions in 6.29 and for the later one represents the value of 6.  The price to reserve P / B for DNR is 2.37, the price for sale is 1.49 and for HMY these proportions are 0.31 and 0.48.