The shares of Immunomedics, Inc. (NASDAQ:IMMU) and China Pharma Holdings, Inc. (NYSE:CPHI) were among the active stocks of the last trading sessions. Immunomedics, Inc. (NASDAQ:IMMU) soared to 1.55% closing at the price of $20.31 whereas the shares of China Pharma Holdings, Inc. (NYSE:CPHI) soared 23.02% with the increase of 0.06 points closing at the price of $0.3. Immunomedics, Inc. has currently increase 28.38% in its stock over the period of 6-months while its rival China Pharma Holdings, Inc. added 2.46% 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 Immunomedics, Inc. (NASDAQ:IMMU) is -33.6% while the ROI of China Pharma Holdings, Inc. (NYSE:CPHI) is -35.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, IMMU’s EBITDA Margin is -22.22 whereas CPHI’s is -117.71.
Both the profitability ratios suggest that Immunomedics, Inc. (NASDAQ:IMMU) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Immunomedics, Inc. (NASDAQ:IMMU) reported $-0.68/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.22/share Thus lagging the analyst Estimates with a Surprise Factor of -209.1 Percent. While, China Pharma Holdings, Inc. (NYSE:CPHI) reported EPS of $0.08/share in the last quarter. The analysts projected EPS of $0.12/share depicting a Surprise of -33.3 Percent.
Taking a look at Earnings per Share, China Pharma Holdings, Inc. tends to be beating the analyst estimates more than Immunomedics, Inc.. so CPHI is more profitable than IMMU.
Technical Analysis of Immunomedics, Inc. & China Pharma Holdings, Inc.
Moving average convergence divergence (MACD) shows that Immunomedics, Inc. (NASDAQ:IMMU) is on a PRICE RELATIVITY trend While China Pharma Holdings, Inc. (NYSE:CPHI) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Immunomedics, Inc. was in BEARISH territory and China Pharma Holdings, Inc. was in BULLISH territory.
IMMU’s current statistics gauge that the stock candle is BULLISH with LOW volatility. While CPHI’s candle is BULLISH with HIGH.
EPS Growth Rate: IMMU’s 0% versus CPHI’s 10%
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 Immunomedics, Inc. (NASDAQ:IMMU) is predicted at 0% while China Pharma Holdings, Inc. (NYSE:CPHI) stands at 10%. These numbers suggest that CPHI 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 IMMU stands at 14.8 while CPHI is at 1.3 whereas the debt ratio of the prior is 0.05 while the debt ratio of the later is 0.26.
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 1.5 for IMMU and 2 for CPHI which means IMMU has Buy rating whereas CPHI 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 IMMU is $35.83 which is 43.32% of its current price while CPHI has price target of 3 which is 90% 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.
IMMU currently has price to earning P/E ratio of 0 whereas CPHI has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 0.
The price to Book P/B for IMMU is 9.07, Price to Sale is at 1758.57 and for CPHI these ratios stand at 0.32 and 0.96.