The shares of Wynn Resorts, Limited (NASDAQ:WYNN) and Blue Apron Holdings, Inc. (NYSE:APRN) were among the active stocks of the last trading sessions. Wynn Resorts, Limited (NASDAQ:WYNN) soared to 2.31% closing at the price of $118.96 whereas the shares of Blue Apron Holdings, Inc. (NYSE:APRN) declined -6.12% with the decrease of -0.09 points closing at the price of $1.38. Wynn Resorts, Limited has currently decrease -33.85% in its stock over the period of 6-months while its rival Blue Apron Holdings, Inc. subtracted -23.76% 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 Wynn Resorts, Limited (NASDAQ:WYNN) is 9.3% while the ROI of Blue Apron Holdings, Inc. (NYSE:APRN) is -54.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, WYNN’s EBITDA Margin is 11.13 whereas APRN’s is -2.55.
Both the profitability ratios suggest that Wynn Resorts, Limited (NASDAQ:WYNN) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Wynn Resorts, Limited (NASDAQ:WYNN) reported $1.53/share EPS for the previous quarter where analysts were predicting an EPS to be $1.96/share Thus lagging the analyst Estimates with a Surprise Factor of -21.9 Percent. While, Blue Apron Holdings, Inc. (NYSE:APRN) reported EPS of $-0.17/share in the last quarter. The analysts projected EPS of $-0.18/share depicting a Surprise of 5.6 Percent.
Taking a look at Earnings per Share, Blue Apron Holdings, Inc. tends to be beating the analyst estimates more than Wynn Resorts, Limited. so APRN is more profitable than WYNN.
Technical Analysis of Wynn Resorts, Limited & Blue Apron Holdings, Inc.
Moving average convergence divergence (MACD) shows that Wynn Resorts, Limited (NASDAQ:WYNN) is on a PRICE RELATIVITY trend While Blue Apron Holdings, Inc. (NYSE:APRN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Wynn Resorts, Limited was in BEARISH territory and Blue Apron Holdings, Inc. was in BEARISH territory.
WYNN’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While APRN’s candle is BEARISH with HIGH.
EPS Growth Rate: WYNN’s 14% versus APRN’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 Wynn Resorts, Limited (NASDAQ:WYNN) is predicted at 14% while Blue Apron Holdings, Inc. (NYSE:APRN) stands at 0%. These numbers suggest that WYNN 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 WYNN stands at 1.1 while APRN is at 2.7 whereas the debt ratio of the prior is 4.85 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.
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 2.4 for WYNN and 2.7 for APRN which means WYNN has Hold rating whereas APRN 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 WYNN is $180.81 which is 34.21% of its current price while APRN has price target of 2.71 which is 49.08% 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.
WYNN currently has price to earning P/E ratio of 70.22 whereas APRN has 0 while the forward P/E ratio for the prior stands at 13.49 and for the later it depicts the value of 0.
The price to Book P/B for WYNN is 7.49, Price to Sale is at 2 and for APRN these ratios stand at 1.57 and 0.34.