The shares of Antero Midstream Partners LP (NYSE:AM) and Weibo Corporation (NASDAQ:WB) were among the active stocks of the last trading sessions. Antero Midstream Partners LP (NYSE:AM) soared to 15.09% closing at the price of $33.93 whereas the shares of Weibo Corporation (NASDAQ:WB) declined -4.67% with the decrease of -2.99 points closing at the price of $61.08. Antero Midstream Partners LP has currently increase 34.06% in its stock over the period of 6-months while its rival Weibo Corporation subtracted -50.71% 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 Antero Midstream Partners LP (NYSE:AM) is 12.1% while the ROI of Weibo Corporation (NASDAQ:WB) is 16.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AM’s EBITDA Margin is 12.73 whereas WB’s is 25.14.
Both the profitability ratios suggest that Weibo Corporation (NASDAQ:WB) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Antero Midstream Partners LP (NYSE:AM) reported $0.41/share EPS for the previous quarter where analysts were predicting an EPS to be $0.43/share Thus lagging the analyst Estimates with a Surprise Factor of -4.7 Percent. While, Weibo Corporation (NASDAQ:WB) reported EPS of $0.68/share in the last quarter. The analysts projected EPS of $0.66/share depicting a Surprise of 3 Percent.
Taking a look at Earnings per Share, Weibo Corporation tends to be beating the analyst estimates more than Antero Midstream Partners LP. so WB is more profitable than AM.
Technical Analysis of Antero Midstream Partners LP & Weibo Corporation
Moving average convergence divergence (MACD) shows that Antero Midstream Partners LP (NYSE:AM) is on a PRICE RELATIVITY trend While Weibo Corporation (NASDAQ:WB) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Antero Midstream Partners LP was in BULLISH territory and Weibo Corporation was in BEARISH territory.
AM’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While WB’s candle is BEARISH with HIGH.
EPS Growth Rate: AM’s 16.7% versus WB’s 46.02%
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 Antero Midstream Partners LP (NYSE:AM) is predicted at 16.7% while Weibo Corporation (NASDAQ:WB) stands at 46.02%. These numbers suggest that WB 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 AM stands at 1.3 while WB is at 4 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.62.
The values of the both ratios suggest that WB 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 1.4 for AM and 1.8 for WB which means AM has Buy rating whereas WB 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 AM is $37.79 which is 10.21% of its current price while WB has price target of 124.91 which is 51.1% 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.
AM currently has price to earning P/E ratio of 24.6 whereas WB has 29.48 while the forward P/E ratio for the prior stands at 15.77 and for the later it depicts the value of 15.96.
The price to Book P/B for AM is 4.18, Price to Sale is at 7.1 and for WB these ratios stand at 9.53 and 9.43.