The shares of Box, Inc. (NYSE:BOX) and DISH Network Corporation (NASDAQ:DISH) were among the active stocks of the last trading sessions. Box, Inc. (NYSE:BOX) declined to -1.37% closing at the price of $20.89 whereas the shares of DISH Network Corporation (NASDAQ:DISH) declined -5.33% with the decrease of -1.93 points closing at the price of $34.3. Box, Inc. has currently increase 4.14% in its stock over the period of 6-months while its rival DISH Network Corporation subtracted -10.72% 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 Box, Inc. (NYSE:BOX) is -64.5% while the ROI of DISH Network Corporation (NASDAQ:DISH) is 3.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BOX’s EBITDA Margin is -31.26 whereas DISH’s is 11.22.
Both the profitability ratios suggest that DISH Network Corporation (NASDAQ:DISH) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Box, Inc. (NYSE:BOX) reported $-0.05/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.06/share Thus beating the analyst Estimates with a Surprise Factor of 16.7 Percent. While, DISH Network Corporation (NASDAQ:DISH) reported EPS of $0.83/share in the last quarter. The analysts projected EPS of $0.71/share depicting a Surprise of 16.9 Percent.
Taking a look at Earnings per Share, DISH Network Corporation tends to be beating the analyst estimates more than Box, Inc.. so DISH is more profitable than BOX.
Technical Analysis of Box, Inc. & DISH Network Corporation
Moving average convergence divergence (MACD) shows that Box, Inc. (NYSE:BOX) is on a PRICE RELATIVITY trend While DISH Network Corporation (NASDAQ:DISH) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Box, Inc. was in BEARISH territory and DISH Network Corporation was in BULLISH territory.
BOX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While DISH’s candle is BEARISH with LOW.
EPS Growth Rate: BOX’s 8% versus DISH’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 Box, Inc. (NYSE:BOX) is predicted at 8% while DISH Network Corporation (NASDAQ:DISH) stands at 0%. These numbers suggest that BOX 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 BOX stands at 1 while DISH is at 0.8 whereas the debt ratio of the prior is 2.65 while the debt ratio of the later is 1.94.
The values of the both ratios suggest that BOX is more suitable investment when the liquidity and risk is the main concern.
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 1.9 for BOX and 2.5 for DISH which means BOX has Buy rating whereas DISH 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 BOX is $29.36 which is 28.85% of its current price while DISH has price target of 51.45 which is 33.33% 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.
BOX currently has price to earning P/E ratio of 0 whereas DISH has 13.98 while the forward P/E ratio for the prior stands at 290.14 and for the later it depicts the value of 14.61.
The price to Book P/B for BOX is 83.56, Price to Sale is at 5.41 and for DISH these ratios stand at 2.05 and 1.21.