The shares of BioLineRx Ltd. (NASDAQ:BLRX) and Capital One Financial Corporation (NYSE:COF) were among the active stocks of the last trading sessions. BioLineRx Ltd. (NASDAQ:BLRX) declined to -9.93% closing at the price of $1.27 whereas the shares of Capital One Financial Corporation (NYSE:COF) soared 0.39% with the increase of 0.37 points closing at the price of $96.43. BioLineRx Ltd. has currently increase 43.42% in its stock over the period of 6-months while its rival Capital One Financial Corporation subtracted -0.4% 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 BioLineRx Ltd. (NASDAQ:BLRX) is 0% while the ROI of Capital One Financial Corporation (NYSE:COF) is 13.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BLRX’s EBITDA Margin is -4.18 whereas COF’s is NOT AVAILABLE.
Both the profitability ratios suggest that Capital One Financial Corporation (NYSE:COF) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
BioLineRx Ltd. (NASDAQ:BLRX) reported $-0.05/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.06/share Thus beating the analyst Estimates with a Surprise Factor of 16.7 Percent. While, Capital One Financial Corporation (NYSE:COF) reported EPS of $3.71/share in the last quarter. The analysts projected EPS of $2.63/share depicting a Surprise of 41.1 Percent.
Taking a look at Earnings per Share, Capital One Financial Corporation tends to be beating the analyst estimates more than BioLineRx Ltd.. so COF is more profitable than BLRX.
Technical Analysis of BioLineRx Ltd. & Capital One Financial Corporation
Moving average convergence divergence (MACD) shows that BioLineRx Ltd. (NASDAQ:BLRX) is on a PRICE RELATIVITY trend While Capital One Financial Corporation (NYSE:COF) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the BioLineRx Ltd. was in BULLISH territory and Capital One Financial Corporation was in BULLISH territory.
BLRX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While COF’s candle is BULLISH with LOW.
EPS Growth Rate: BLRX’s 0% versus COF’s 11.85%
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 BioLineRx Ltd. (NASDAQ:BLRX) is predicted at 0% while Capital One Financial Corporation (NYSE:COF) stands at 11.85%. These numbers suggest that COF 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 BLRX stands at 0 while COF is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 1.06.
The values of the both ratios suggest that COF 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 1.8 for BLRX and 2 for COF which means BLRX has Buy rating whereas COF 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 BLRX is $3 which is 57.67% of its current price while COF has price target of 115.36 which is 16.41% 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.
BLRX currently has price to earning P/E ratio of 0 whereas COF has 9.33 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 8.58.
The price to Book P/B for BLRX is 2.97, Price to Sale is at 0 and for COF these ratios stand at 0.94 and 1.77.