The shares of Carnival Corporation (NYSE:CCL) and Senseonics Holdings, Inc. (NYSE:SENS) were among the active stocks of the last trading sessions. Carnival Corporation (NYSE:CCL) soared to 0.84% closing at the price of $61.09 whereas the shares of Senseonics Holdings, Inc. (NYSE:SENS) declined -4.4% with the decrease of -0.17 points closing at the price of $3.69. Carnival Corporation has currently decrease -3.19% in its stock over the period of 6-months while its rival Senseonics Holdings, Inc. subtracted -1.34% 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 Carnival Corporation (NYSE:CCL) is 8.2% while the ROI of Senseonics Holdings, Inc. (NYSE:SENS) is -177.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CCL’s EBITDA Margin is 9.5 whereas SENS’s is -7.98.
Both the profitability ratios suggest that Carnival Corporation (NYSE:CCL) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Carnival Corporation (NYSE:CCL) reported $2.36/share EPS for the previous quarter where analysts were predicting an EPS to be $2.32/share Thus beating the analyst Estimates with a Surprise Factor of 1.7 Percent. While, Senseonics Holdings, Inc. (NYSE:SENS) reported EPS of $-0.23/share in the last quarter. The analysts projected EPS of $-0.14/share depicting a Surprise of -64.3 Percent.
Taking a look at Earnings per Share, Carnival Corporation tends to be beating the analyst estimates more than Senseonics Holdings, Inc.. so CCL is more profitable than SENS.
Technical Analysis of Carnival Corporation & Senseonics Holdings, Inc.
Moving average convergence divergence (MACD) shows that Carnival Corporation (NYSE:CCL) is on a PRICE RELATIVITY trend While Senseonics Holdings, Inc. (NYSE:SENS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Carnival Corporation was in BEARISH territory and Senseonics Holdings, Inc. was in BEARISH territory.
CCL’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While SENS’s candle is BEARISH with HIGH.
EPS Growth Rate: CCL’s 12.2% versus SENS’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 Carnival Corporation (NYSE:CCL) is predicted at 12.2% while Senseonics Holdings, Inc. (NYSE:SENS) stands at 0%. These numbers suggest that CCL 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 CCL stands at 0.2 while SENS is at 8.3 whereas the debt ratio of the prior is 0.39 while the debt ratio of the later is 0.51.
The values of the both ratios suggest that SENS 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 for CCL and 1.3 for SENS which means CCL has Buy rating whereas SENS 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 CCL is $72.98 which is 16.29% of its current price while SENS has price target of 5.86 which is 37.03% 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.
CCL currently has price to earning P/E ratio of 13.57 whereas SENS has 0 while the forward P/E ratio for the prior stands at 13.09 and for the later it depicts the value of 0.
The price to Book P/B for CCL is 1.75, Price to Sale is at 2.32 and for SENS these ratios stand at 4.86 and 57.3.