The shares of Matinas Biopharma Holdings, Inc. (NYSE:MTNB) and Extreme Networks, Inc. (NASDAQ:EXTR) were among the active stocks of the last trading sessions. Matinas Biopharma Holdings, Inc. (NYSE:MTNB) declined to -1.41% closing at the price of $0.81 whereas the shares of Extreme Networks, Inc. (NASDAQ:EXTR) declined -6% with the decrease of -0.33 points closing at the price of $5.17. Matinas Biopharma Holdings, Inc. has currently increase 26.6% in its stock over the period of 6-months while its rival Extreme Networks, Inc. subtracted -52.17% 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 Matinas Biopharma Holdings, Inc. (NYSE:MTNB) is 3877.1% while the ROI of Extreme Networks, Inc. (NASDAQ:EXTR) is -12.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, MTNB’s EBITDA Margin is -5.44 whereas EXTR’s is 8.98.
Both the profitability ratios suggest a mixed sentiment for Matinas Biopharma Holdings, Inc. (NYSE:MTNB) and Extreme Networks, Inc. (NASDAQ:EXTR).
EPS & Surprise Factor
Matinas Biopharma Holdings, Inc. (NYSE:MTNB) reported $-0.04/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.04/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Extreme Networks, Inc. (NASDAQ:EXTR) reported EPS of $0.2/share in the last quarter. The analysts projected EPS of $0.19/share depicting a Surprise of 5.3 Percent.
Taking a look at Earnings per Share, Extreme Networks, Inc. tends to be beating the analyst estimates more than Matinas Biopharma Holdings, Inc.. so EXTR is more profitable than MTNB.
Technical Analysis of Matinas Biopharma Holdings, Inc. & Extreme Networks, Inc.
Moving average convergence divergence (MACD) shows that Matinas Biopharma Holdings, Inc. (NYSE:MTNB) is on a PRICE RELATIVITY trend While Extreme Networks, Inc. (NASDAQ:EXTR) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Matinas Biopharma Holdings, Inc. was in BULLISH territory and Extreme Networks, Inc. was in BEARISH territory.
MTNB’s current statistics gauge that the stock candle is NEUTRAL with HIGH volatility. While EXTR’s candle is BEARISH with MEDIUM.
EPS Growth Rate: MTNB’s 0% versus EXTR’s 20%
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 Matinas Biopharma Holdings, Inc. (NYSE:MTNB) is predicted at 0% while Extreme Networks, Inc. (NASDAQ:EXTR) stands at 20%. These numbers suggest that EXTR 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 MTNB stands at 6.3 while EXTR is at 1.2 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 1.75.
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 for MTNB and 2.2 for EXTR which means MTNB has Buy rating whereas EXTR 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 MTNB is $2 which is 59.5% of its current price while EXTR has price target of 9.38 which is 44.88% 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.
MTNB currently has price to earning P/E ratio of 0 whereas EXTR has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 7.33.
The price to Book P/B for MTNB is 0, Price to Sale is at 421.77 and for EXTR these ratios stand at 5.33 and 0.65.