The shares of FlexShopper, Inc. (NASDAQ:FPAY) and Western Digital Corporation (NASDAQ:WDC) were among the active stocks of the last trading sessions. FlexShopper, Inc. (NASDAQ:FPAY) soared to 5.96% closing at the price of $0.92 whereas the shares of Western Digital Corporation (NASDAQ:WDC) declined -0.89% with the decrease of -0.5 points closing at the price of $55.65. FlexShopper, Inc. has currently decrease -68.11% in its stock over the period of 6-months while its rival Western Digital Corporation subtracted -38.66% 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 FlexShopper, Inc. (NASDAQ:FPAY) is 0% while the ROI of Western Digital Corporation (NASDAQ:WDC) is 16.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, FPAY’s EBITDA Margin is -8.79 whereas WDC’s is 3.82.
Both the profitability ratios suggest that Western Digital Corporation (NASDAQ:WDC) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Technical Analysis of FlexShopper, Inc. & Western Digital Corporation
Moving average convergence divergence (MACD) shows that FlexShopper, Inc. (NASDAQ:FPAY) is on a PRICE RELATIVITY trend While Western Digital Corporation (NASDAQ:WDC) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the FlexShopper, Inc. was in BEARISH territory and Western Digital Corporation was in BEARISH territory.
FPAY’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While WDC’s candle is BEARISH with MEDIUM.
EPS Growth Rate: FPAY’s 0% versus WDC’s 5.63%
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 FlexShopper, Inc. (NASDAQ:FPAY) is predicted at 0% while Western Digital Corporation (NASDAQ:WDC) stands at 5.63%. These numbers suggest that WDC 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 FPAY stands at 1 while WDC is at 2.4 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.97.
The values of the both ratios suggest that WDC 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 0 for FPAY and 2.2 for WDC which means FPAY has Strong Buy rating whereas WDC 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.
FPAY currently has price to earning P/E ratio of 0 whereas WDC has 7.97 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 4.74.
The price to Book P/B for FPAY is 0, Price to Sale is at 0.2 and for WDC these ratios stand at 1.45 and 0.79.