The shares of Histogenics Corporation (NASDAQ:HSGX) and Aflac Incorporated (NYSE:AFL) were among the active stocks of the last trading sessions. Histogenics Corporation (NASDAQ:HSGX) declined to -2.32% closing at the price of $0.59 whereas the shares of Aflac Incorporated (NYSE:AFL) soared 1.35% with the increase of 0.63 points closing at the price of $47.13. Histogenics Corporation has currently decrease -77.99% in its stock over the period of 6-months while its rival Aflac Incorporated added 6.2% 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 Histogenics Corporation (NASDAQ:HSGX) is 0% while the ROI of Aflac Incorporated (NYSE:AFL) is 9.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HSGX’s EBITDA Margin is -0.36 whereas AFL’s is 8.87.
Both the profitability ratios suggest that Aflac Incorporated (NYSE:AFL) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Histogenics Corporation (NASDAQ:HSGX) reported $-0.13/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.23/share Thus beating the analyst Estimates with a Surprise Factor of 43.5 Percent. While, Aflac Incorporated (NYSE:AFL) reported EPS of $1.07/share in the last quarter. The analysts projected EPS of $0.99/share depicting a Surprise of 8.1 Percent.
Taking a look at Earnings per Share, Histogenics Corporation tends to be beating the analyst estimates more than Aflac Incorporated. so HSGX is more profitable than AFL.
Technical Analysis of Histogenics Corporation & Aflac Incorporated
Moving average convergence divergence (MACD) shows that Histogenics Corporation (NASDAQ:HSGX) is on a PRICE RELATIVITY trend While Aflac Incorporated (NYSE:AFL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Histogenics Corporation was in BULLISH territory and Aflac Incorporated was in BEARISH territory.
HSGX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While AFL’s candle is BULLISH with LOW.
EPS Growth Rate: HSGX’s 0% versus AFL’s 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 Histogenics Corporation (NASDAQ:HSGX) is predicted at 0% while Aflac Incorporated (NYSE:AFL) stands at 8%. These numbers suggest that AFL 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 HSGX stands at 0.8 while AFL is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.22.
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 HSGX and 2.8 for AFL which means HSGX has Hold rating whereas AFL 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 HSGX is $3.4 which is 82.65% of its current price while AFL has price target of 47.5 which is 0.78% 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.
HSGX currently has price to earning P/E ratio of 0 whereas AFL has 12.71 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 11.31.
The price to Book P/B for HSGX is 0, Price to Sale is at 0 and for AFL these ratios stand at 1.53 and 1.65.