The shares of Bank of America Corporation (NYSE:BAC) and Helios and Matheson Analytics Inc (NASDAQ:HMNY) were among the active stocks of the last trading sessions. Bank of America Corporation (NYSE:BAC) declined to -2.47% closing at the price of $29.24 whereas the shares of Helios and Matheson Analytics Inc (NASDAQ:HMNY) declined -9.84% with the increase of 0 points closing at the price of $0.02. Bank of America Corporation has currently decrease -4.6% in its stock over the period of 6-months while its rival Helios and Matheson Analytics Inc subtracted -100% 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 Bank of America Corporation (NYSE:BAC) is 4.8% while the ROI of Helios and Matheson Analytics Inc (NASDAQ:HMNY) is 171.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BAC’s EBITDA Margin is NOT AVAILABLE whereas HMNY’s is 0.08.
Both the profitability ratios suggest a mixed sentiment for Bank of America Corporation (NYSE:BAC) and Helios and Matheson Analytics Inc (NASDAQ:HMNY).
EPS & Surprise Factor
Bank of America Corporation (NYSE:BAC) reported $0.63/share EPS for the previous quarter where analysts were predicting an EPS to be $0.57/share Thus beating the analyst Estimates with a Surprise Factor of 10.5 Percent. While, Helios and Matheson Analytics Inc (NASDAQ:HMNY) reported EPS of $-133.1/share in the last quarter. The analysts projected EPS of $-275/share depicting a Surprise of 51.6 Percent.
Taking a look at Earnings per Share, Helios and Matheson Analytics Inc tends to be beating the analyst estimates more than Bank of America Corporation. so HMNY is more profitable than BAC.
Technical Analysis of Bank of America Corporation & Helios and Matheson Analytics Inc
Moving average convergence divergence (MACD) shows that Bank of America Corporation (NYSE:BAC) is on a PRICE RELATIVITY trend While Helios and Matheson Analytics Inc (NASDAQ:HMNY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Bank of America Corporation was in BULLISH territory and Helios and Matheson Analytics Inc was in BULLISH territory.
BAC’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While HMNY’s candle is NEUTRAL with HIGH.
EPS Growth Rate: BAC’s 29.2% versus HMNY’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 Bank of America Corporation (NYSE:BAC) is predicted at 29.2% while Helios and Matheson Analytics Inc (NASDAQ:HMNY) stands at 0%. These numbers suggest that BAC 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 BAC stands at 0 while HMNY is at 0.4 whereas the debt ratio of the prior is 1.79 while the debt ratio of the later is 0.01.
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 BAC and 3 for HMNY which means BAC has Buy rating whereas HMNY 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 BAC is $34.77 which is 15.9% of its current price while HMNY has price target of 3000 which is 100% 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.
BAC currently has price to earning P/E ratio of 13.79 whereas HMNY has 0 while the forward P/E ratio for the prior stands at 10.08 and for the later it depicts the value of 0.
The price to Book P/B for BAC is 1.24, Price to Sale is at 4.77 and for HMNY these ratios stand at 0 and 0.19.