The shares of Amphenol Corporation (NYSE:APH) and Amyris, Inc. (NASDAQ:AMRS) were among the active stocks of the last trading sessions. Amphenol Corporation (NYSE:APH) soared to 1% closing at the price of $90.19 whereas the shares of Amyris, Inc. (NASDAQ:AMRS) soared 6.6% with the increase of 0.57 points closing at the price of $9.2. Amphenol Corporation has currently increase 5.76% in its stock over the period of 6-months while its rival Amyris, Inc. added 32.76% 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 Amphenol Corporation (NYSE:APH) is 15.1% while the ROI of Amyris, Inc. (NASDAQ:AMRS) is 10.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, APH’s EBITDA Margin is 16.48 whereas AMRS’s is -29.42.
Both the profitability ratios suggest that Amphenol Corporation (NYSE:APH) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Amphenol Corporation (NYSE:APH) reported $0.9/share EPS for the previous quarter where analysts were predicting an EPS to be $0.85/share Thus beating the analyst Estimates with a Surprise Factor of 5.9 Percent. While, Amyris, Inc. (NASDAQ:AMRS) reported EPS of $0.05/share in the last quarter. The analysts projected EPS of $-0.3/share depicting a Surprise of 116.7 Percent.
Taking a look at Earnings per Share, Amyris, Inc. tends to be beating the analyst estimates more than Amphenol Corporation. so AMRS is more profitable than APH.
Technical Analysis of Amphenol Corporation & Amyris, Inc.
Moving average convergence divergence (MACD) shows that Amphenol Corporation (NYSE:APH) is on a PRICE RELATIVITY trend While Amyris, Inc. (NASDAQ:AMRS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Amphenol Corporation was in BEARISH territory and Amyris, Inc. was in BULLISH territory.
APH’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While AMRS’s candle is BULLISH with HIGH.
EPS Growth Rate: APH’s 10.05% versus AMRS’s 30%
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 Amphenol Corporation (NYSE:APH) is predicted at 10.05% while Amyris, Inc. (NASDAQ:AMRS) stands at 30%. These numbers suggest that AMRS 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 APH stands at 1.7 while AMRS is at 0.4 whereas the debt ratio of the prior is 0.91 while the debt ratio of the later is 0.
The values of the both ratios suggest that APH 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 2 for APH and 2 for AMRS which means APH has Buy rating whereas AMRS 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 APH is $101.5 which is 11.14% of its current price while AMRS has price target of 12.5 which is 26.4% 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.
APH currently has price to earning P/E ratio of 23.92 whereas AMRS has 0 while the forward P/E ratio for the prior stands at 22.68 and for the later it depicts the value of 48.42.
The price to Book P/B for APH is 7.22, Price to Sale is at 3.59 and for AMRS these ratios stand at 0 and 2.82.