The shares of Huntington Bancshares Incorporated (NASDAQ:HBAN) and Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) were among the active stocks of the last trading sessions. Huntington Bancshares Incorporated (NASDAQ:HBAN) declined to -0.39% closing at the price of $15.35 whereas the shares of Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) soared 2.27% with the increase of 0 points closing at the price of $0.22. Huntington Bancshares Incorporated has currently increase 4.99% in its stock over the period of 6-months while its rival Titan Pharmaceuticals, Inc. subtracted -76.8% 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 Huntington Bancshares Incorporated (NASDAQ:HBAN) is 13% while the ROI of Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) is -193.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HBAN’s EBITDA Margin is NOT AVAILABLE whereas TTNP’s is -0.66.
Both the profitability ratios suggest that Huntington Bancshares Incorporated (NASDAQ:HBAN) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Huntington Bancshares Incorporated (NASDAQ:HBAN) reported $0.3/share EPS for the previous quarter where analysts were predicting an EPS to be $0.29/share Thus beating the analyst Estimates with a Surprise Factor of 3.4 Percent. While, Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) reported EPS of $-0.04/share in the last quarter. The analysts projected EPS of $-0.13/share depicting a Surprise of 69.2 Percent.
Taking a look at Earnings per Share, Titan Pharmaceuticals, Inc. tends to be beating the analyst estimates more than Huntington Bancshares Incorporated. so TTNP is more profitable than HBAN.
Technical Analysis of Huntington Bancshares Incorporated & Titan Pharmaceuticals, Inc.
Moving average convergence divergence (MACD) shows that Huntington Bancshares Incorporated (NASDAQ:HBAN) is on a PRICE RELATIVITY trend While Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Huntington Bancshares Incorporated was in BEARISH territory and Titan Pharmaceuticals, Inc. was in BEARISH territory.
HBAN’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While TTNP’s candle is BEARISH with HIGH.
EPS Growth Rate: HBAN’s 14.65% versus TTNP’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 Huntington Bancshares Incorporated (NASDAQ:HBAN) is predicted at 14.65% while Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) stands at 0%. These numbers suggest that HBAN 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 HBAN stands at 0 while TTNP is at 1.8 whereas the debt ratio of the prior is 0.95 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 2.2 for HBAN and 3 for TTNP which means HBAN has Hold rating whereas TTNP 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 HBAN is $17.46 which is 12.08% of its current price while TTNP has price target of 1.5 which is 85.33% 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.
HBAN currently has price to earning P/E ratio of 14.69 whereas TTNP has 0 while the forward P/E ratio for the prior stands at 11.08 and for the later it depicts the value of 0.
The price to Book P/B for HBAN is 1.65, Price to Sale is at 4.66 and for TTNP these ratios stand at 0 and 1.53.