Which Stock is more profitable? Titan Pharmaceuticals, Inc. (TTNP) or AcelRx Pharmaceuticals, Inc. (ACRX)

The shares of Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) and AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) were among the active stocks of the last trading sessions. Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) soared to 4.81% closing at the price of $0.22 whereas the shares of AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) declined -11.37% with the decrease of -0.34 points closing at the price of $2.65. Titan Pharmaceuticals, Inc. has currently decrease -77.79% in its stock over the period of 6-months while its rival AcelRx Pharmaceuticals, Inc. added 15.22% 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 Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) is -193.4% while the ROI of AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) is -5.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TTNP’s EBITDA Margin is -0.63 whereas ACRX’s is -4.58.

Both the profitability ratios suggest a mixed sentiment for Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) and AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX).

EPS & Surprise Factor

Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) reported $-0.04/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.13/share Thus beating the analyst Estimates with a Surprise Factor of 69.2 Percent. While, AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) reported EPS of $-0.2/share in the last quarter. The analysts projected EPS of $-0.2/share depicting a Surprise of 0 Percent.

Taking a look at Earnings per Share, Titan Pharmaceuticals, Inc. tends to be beating the analyst estimates more than AcelRx Pharmaceuticals, Inc.. so TTNP is more profitable than ACRX.

Technical Analysis of Titan Pharmaceuticals, Inc. & AcelRx Pharmaceuticals, Inc.

Moving average convergence divergence (MACD) shows that Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) is on a PRICE RELATIVITY trend While AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Titan Pharmaceuticals, Inc. was in BEARISH territory and AcelRx Pharmaceuticals, Inc. was in BEARISH territory.

TTNP’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While ACRX’s candle is BEARISH with HIGH.

EPS Growth Rate: TTNP’s 0% versus ACRX’s 0%

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 Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) is predicted at 0% while AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) stands at 0%. These numbers suggest that ACRX 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 TTNP stands at 1.8 while ACRX is at 4 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

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 3 for TTNP and 2.3 for ACRX which means TTNP has Hold rating whereas ACRX 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 TTNP is $1.5 which is 85.33% of its current price while ACRX has price target of 5.6 which is 52.68% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

TTNP currently has price to earning P/E ratio of 0 whereas ACRX 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 TTNP is 0, Price to Sale is at 1.49 and for ACRX these ratios stand at 0 and 50.16.