The shares of Arsanis, Inc. (NASDAQ:ASNS) and Viking Therapeutics, Inc. (NASDAQ:VKTX) were among the active stocks of the last trading sessions. Arsanis, Inc. (NASDAQ:ASNS) soared to 8.24% closing at the price of $1.84 whereas the shares of Viking Therapeutics, Inc. (NASDAQ:VKTX) declined -0.57% with the decrease of -0.09 points closing at the price of $15.57. Arsanis, Inc. has currently decrease -91.71% in its stock over the period of 6-months while its rival Viking Therapeutics, Inc. added 231.28% 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 Arsanis, Inc. (NASDAQ:ASNS) is 0% while the ROI of Viking Therapeutics, Inc. (NASDAQ:VKTX) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ASNS’s EBITDA Margin is 0.26 whereas VKTX’s is NOT AVAILABLE.
Both the profitability ratios suggest that Viking Therapeutics, Inc. (NASDAQ:VKTX) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Arsanis, Inc. (NASDAQ:ASNS) reported $-0.85/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.82/share Thus lagging the analyst Estimates with a Surprise Factor of -3.7 Percent. While, Viking Therapeutics, Inc. (NASDAQ:VKTX) reported EPS of $-0.13/share in the last quarter. The analysts projected EPS of $-0.11/share depicting a Surprise of -18.2 Percent.
Taking a look at Earnings per Share, Arsanis, Inc. tends to be beating the analyst estimates more than Viking Therapeutics, Inc.. so ASNS is more profitable than VKTX.
Technical Analysis of Arsanis, Inc. & Viking Therapeutics, Inc.
Moving average convergence divergence (MACD) shows that Arsanis, Inc. (NASDAQ:ASNS) is on a PRICE RELATIVITY trend While Viking Therapeutics, Inc. (NASDAQ:VKTX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Arsanis, Inc. was in BULLISH territory and Viking Therapeutics, Inc. was in BEARISH territory.
ASNS’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While VKTX’s candle is BULLISH with MEDIUM.
EPS Growth Rate: ASNS’s 0% versus VKTX’s 40%
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 Arsanis, Inc. (NASDAQ:ASNS) is predicted at 0% while Viking Therapeutics, Inc. (NASDAQ:VKTX) stands at 40%. These numbers suggest that VKTX 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 ASNS stands at 5.5 while VKTX is at 35.1 whereas the debt ratio of the prior is 0.3 while the debt ratio of the later is 0.
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 2.8 for ASNS and 1.9 for VKTX which means ASNS has Hold rating whereas VKTX has Buy 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 ASNS is $13.13 which is 85.99% of its current price while VKTX has price target of 32.33 which is 51.84% 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.
ASNS currently has price to earning P/E ratio of 0 whereas VKTX has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 0.
The price to Book P/B for ASNS is 0.7, Price to Sale is at 0 and for VKTX these ratios stand at 5.85 and 0.