The shares of BioPharmX Corporation (NYSE:BPMX) and ReShape Lifesciences Inc. (NASDAQ:RSLS) were among the active stocks of the last trading sessions. BioPharmX Corporation (NYSE:BPMX) soared to 3.41% closing at the price of $0.19 whereas the shares of ReShape Lifesciences Inc. (NASDAQ:RSLS) soared 0.98% with the increase of 0 points closing at the price of $0.03. BioPharmX Corporation has currently decrease -16.29% in its stock over the period of 6-months while its rival ReShape Lifesciences Inc. subtracted -99.68% 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 BioPharmX Corporation (NYSE:BPMX) is 0% while the ROI of ReShape Lifesciences Inc. (NASDAQ:RSLS) is -41.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BPMX’s EBITDA Margin is -1.5 whereas RSLS’s is 0.02.
Both the profitability ratios suggest a mixed sentiment for BioPharmX Corporation (NYSE:BPMX) and ReShape Lifesciences Inc. (NASDAQ:RSLS).
EPS & Surprise Factor
BioPharmX Corporation (NYSE:BPMX) reported $-0.02/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.02/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, ReShape Lifesciences Inc. (NASDAQ:RSLS) reported EPS of $-4.8/share in the last quarter. The analysts projected EPS of $-1.79/share depicting a Surprise of -168.2 Percent.
Taking a look at Earnings per Share, BioPharmX Corporation tends to be beating the analyst estimates more than ReShape Lifesciences Inc.. so BPMX is more profitable than RSLS.
Technical Analysis of BioPharmX Corporation & ReShape Lifesciences Inc.
Moving average convergence divergence (MACD) shows that BioPharmX Corporation (NYSE:BPMX) is on a PRICE RELATIVITY trend While ReShape Lifesciences Inc. (NASDAQ:RSLS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the BioPharmX Corporation was in BEARISH territory and ReShape Lifesciences Inc. was in BEARISH territory.
BPMX’s current statistics gauge that the stock candle is NEUTRAL with LOW volatility. While RSLS’s candle is NEUTRAL with HIGH.
EPS Growth Rate: BPMX’s 0% versus RSLS’s 0.24%
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 BioPharmX Corporation (NYSE:BPMX) is predicted at 0% while ReShape Lifesciences Inc. (NASDAQ:RSLS) stands at 0.24%. These numbers suggest that RSLS 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 BPMX stands at 2.4 while RSLS is at 0.6 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.
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 for BPMX and 3 for RSLS which means BPMX has Buy rating whereas RSLS 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 BPMX is $1.05 which is 81.9% of its current price while RSLS has price target of 32 which is 99.91% 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.
BPMX currently has price to earning P/E ratio of 0 whereas RSLS 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 BPMX is 9.25, Price to Sale is at 497.5 and for RSLS these ratios stand at 0 and 0.95.