The shares of Sphere 3D Corp. (NASDAQ:ANY) and Cosan Limited (NYSE:CZZ) were among the active stocks of the last trading sessions. Sphere 3D Corp. (NASDAQ:ANY) declined to -4.41% closing at the price of $0.34 whereas the shares of Cosan Limited (NYSE:CZZ) soared 6.23% with the increase of 0.45 points closing at the price of $7.67. Sphere 3D Corp. has currently decrease -63.29% in its stock over the period of 6-months while its rival Cosan Limited subtracted -27.09% 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 Sphere 3D Corp. (NASDAQ:ANY) is -40.3% while the ROI of Cosan Limited (NYSE:CZZ) is 11.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ANY’s EBITDA Margin is -3.51 whereas CZZ’s is 7.1.
Both the profitability ratios suggest that Cosan Limited (NYSE:CZZ) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Technical Analysis of Sphere 3D Corp. & Cosan Limited
Moving average convergence divergence (MACD) shows that Sphere 3D Corp. (NASDAQ:ANY) is on a PRICE RELATIVITY trend While Cosan Limited (NYSE:CZZ) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Sphere 3D Corp. was in BEARISH territory and Cosan Limited was in BULLISH territory.
ANY’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While CZZ’s candle is BULLISH with HIGH.
EPS Growth Rate: ANY’s 20% versus CZZ’s 11.2%
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 Sphere 3D Corp. (NASDAQ:ANY) is predicted at 20% while Cosan Limited (NYSE:CZZ) stands at 11.2%. These numbers suggest that ANY 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 ANY stands at 0.3 while CZZ is at 1.6 whereas the debt ratio of the prior is 8.62 while the debt ratio of the later is 4.8.
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 ANY and 2.2 for CZZ which means ANY has Hold rating whereas CZZ 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 ANY is $5 which is 93.2% of its current price while CZZ has price target of 11.43 which is 32.9% 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.
ANY currently has price to earning P/E ratio of 0 whereas CZZ has 11.12 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 7.87.
The price to Book P/B for ANY is 0.91, Price to Sale is at 0.06 and for CZZ these ratios stand at 1.27 and 0.48.