Which stock will you choose? Aemetis, Inc (AMTX) or Nuance Communications, Inc. (NUAN)

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The shares of Aemetis, Inc (NASDAQ:AMTX) and Nuance Communications, Inc. (NASDAQ:NUAN) were among the active stocks of the last trading sessions. Aemetis, Inc (NASDAQ:AMTX) soared to 19.25% closing at the price of $1.61 whereas the shares of Nuance Communications, Inc. (NASDAQ:NUAN) declined -0.7% with the decrease of -0.12 points closing at the price of $17.12. Aemetis, Inc has currently increase 1.26% in its stock over the period of 6-months while its rival Nuance Communications, Inc. added 13.91% 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 Aemetis, Inc (NASDAQ:AMTX) is -15.5% while the ROI of Nuance Communications, Inc. (NASDAQ:NUAN) is 0.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AMTX’s EBITDA Margin is -42.54 whereas NUAN’s is 23.4.

Both the profitability ratios suggest that Nuance Communications, Inc. (NASDAQ:NUAN) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Aemetis, Inc (NASDAQ:AMTX) reported $-0.27/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.35/share Thus beating the analyst Estimates with a Surprise Factor of 22.9 Percent. While, Nuance Communications, Inc. (NASDAQ:NUAN) reported EPS of $0.27/share in the last quarter. The analysts projected EPS of $0.27/share depicting a Surprise of 0 Percent.

Taking a look at Earnings per Share, Aemetis, Inc tends to be beating the analyst estimates more than Nuance Communications, Inc.. so AMTX is more profitable than NUAN.

Technical Analysis of Aemetis, Inc & Nuance Communications, Inc.

Moving average convergence divergence (MACD) shows that Aemetis, Inc (NASDAQ:AMTX) is on a PRICE RELATIVITY trend While Nuance Communications, Inc. (NASDAQ:NUAN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Aemetis, Inc was in BULLISH territory and Nuance Communications, Inc. was in BULLISH territory.

AMTX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While NUAN’s candle is BEARISH with LOW.

EPS Growth Rate: AMTX’s 0% versus NUAN’s 7.9%

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 Aemetis, Inc (NASDAQ:AMTX) is predicted at 0% while Nuance Communications, Inc. (NASDAQ:NUAN) stands at 7.9%. These numbers suggest that NUAN 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 AMTX stands at 0.3 while NUAN is at 1.3 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 1.32.

The values of the both ratios suggest that NUAN is more suitable investment when the liquidity and risk is the main concern.

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 2.5 for AMTX and 2 for NUAN which means AMTX has Hold rating whereas NUAN 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 AMTX is $2.5 which is 35.6% of its current price while NUAN has price target of 18.75 which is 8.69% 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.

AMTX currently has price to earning P/E ratio of 0 whereas NUAN has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 13.99.

The price to Book P/B for AMTX is 0, Price to Sale is at 0.2 and for NUAN these ratios stand at 2.85 and 2.49.