The shares of Vital Therapies, Inc. (NASDAQ:VTL) and AGNC Investment Corp. (NASDAQ:AGNC) were among the active stocks of the last trading sessions. Vital Therapies, Inc. (NASDAQ:VTL) declined to -2.89% closing at the price of $0.33 whereas the shares of AGNC Investment Corp. (NASDAQ:AGNC) soared 0.77% with the increase of 0.14 points closing at the price of $18.25. Vital Therapies, Inc. has currently decrease -94.46% in its stock over the period of 6-months while its rival AGNC Investment Corp. subtracted -2.61% 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 Vital Therapies, Inc. (NASDAQ:VTL) is 0% while the ROI of AGNC Investment Corp. (NASDAQ:AGNC) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, VTL’s EBITDA Margin is 0.31 whereas AGNC’s is NOT AVAILABLE.
Both the profitability ratios suggest that AGNC Investment Corp. (NASDAQ:AGNC) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Vital Therapies, Inc. (NASDAQ:VTL) reported $-0.3/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.33/share Thus beating the analyst Estimates with a Surprise Factor of 9.1 Percent. While, AGNC Investment Corp. (NASDAQ:AGNC) reported EPS of $0.63/share in the last quarter. The analysts projected EPS of $0.61/share depicting a Surprise of 3.3 Percent.
Taking a look at Earnings per Share, Vital Therapies, Inc. tends to be beating the analyst estimates more than AGNC Investment Corp.. so VTL is more profitable than AGNC.
Technical Analysis of Vital Therapies, Inc. & AGNC Investment Corp.
Moving average convergence divergence (MACD) shows that Vital Therapies, Inc. (NASDAQ:VTL) is on a PRICE RELATIVITY trend While AGNC Investment Corp. (NASDAQ:AGNC) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Vital Therapies, Inc. was in BULLISH territory and AGNC Investment Corp. was in BEARISH territory.
VTL’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While AGNC’s candle is BULLISH with HIGH.
EPS Growth Rate: VTL’s 15.5% versus AGNC’s 1.4%
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 Vital Therapies, Inc. (NASDAQ:VTL) is predicted at 15.5% while AGNC Investment Corp. (NASDAQ:AGNC) stands at 1.4%. These numbers suggest that VTL 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 VTL stands at 3.9 while AGNC is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 5.74.
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 3 for VTL and 2.9 for AGNC which means VTL has Hold rating whereas AGNC has Hold rating.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
VTL currently has price to earning P/E ratio of 0 whereas AGNC has 5.27 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 7.81.
The price to Book P/B for VTL is 0.53, Price to Sale is at 0 and for AGNC these ratios stand at 0.86 and 3.97.