The shares of Envision Healthcare Corporation (NYSE:EVHC) and First Majestic Silver Corp. (NYSE:AG) were among the active stocks of the last trading sessions. Envision Healthcare Corporation (NYSE:EVHC) soared to 0% closing at the price of $45.96 whereas the shares of First Majestic Silver Corp. (NYSE:AG) soared 2.12% with the increase of 0.12 points closing at the price of $5.79. Envision Healthcare Corporation has currently increase 28.27% in its stock over the period of 6-months while its rival First Majestic Silver Corp. subtracted -8.68% 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 Envision Healthcare Corporation (NYSE:EVHC) is 0.7% while the ROI of First Majestic Silver Corp. (NYSE:AG) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, EVHC’s EBITDA Margin is 9.94 whereas AG’s is 20.05.
Both the profitability ratios suggest a mixed sentiment for Envision Healthcare Corporation (NYSE:EVHC) and First Majestic Silver Corp. (NYSE:AG).
EPS & Surprise Factor
Envision Healthcare Corporation (NYSE:EVHC) reported $0.92/share EPS for the previous quarter where analysts were predicting an EPS to be $0.87/share Thus beating the analyst Estimates with a Surprise Factor of 5.7 Percent. While, First Majestic Silver Corp. (NYSE:AG) reported EPS of $-0.04/share in the last quarter. The analysts projected EPS of $0.01/share depicting a Surprise of -100 Percent.
Taking a look at Earnings per Share, Envision Healthcare Corporation tends to be beating the analyst estimates more than First Majestic Silver Corp.. so EVHC is more profitable than AG.
Technical Analysis of Envision Healthcare Corporation & First Majestic Silver Corp.
Moving average convergence divergence (MACD) shows that Envision Healthcare Corporation (NYSE:EVHC) is on a PRICE RELATIVITY trend While First Majestic Silver Corp. (NYSE:AG) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Envision Healthcare Corporation was in BULLISH territory and First Majestic Silver Corp. was in BULLISH territory.
EVHC’s current statistics gauge that the stock candle is BULLISH with LOW volatility. While AG’s candle is BULLISH with MEDIUM.
EPS Growth Rate: EVHC’s 18.21% versus AG’s 46.8%
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 Envision Healthcare Corporation (NYSE:EVHC) is predicted at 18.21% while First Majestic Silver Corp. (NYSE:AG) stands at 46.8%. These numbers suggest that AG 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 EVHC stands at 2.4 while AG is at 0 whereas the debt ratio of the prior is 1 while the debt ratio of the later is 0.
The values of the both ratios suggest that EVHC 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 2.6 for EVHC and 2.3 for AG which means EVHC has Hold rating whereas AG 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 EVHC is $45.9 which is -0.13% of its current price while AG has price target of 9.54 which is 39.31% 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.
EVHC currently has price to earning P/E ratio of 0 whereas AG has 0 while the forward P/E ratio for the prior stands at 11.33 and for the later it depicts the value of 82.71.
The price to Book P/B for EVHC is 1.2, Price to Sale is at 0.68 and for AG these ratios stand at 1.5 and 3.67.