Comparing Profitability of these two stocks: Coeur Mining, Inc. (CDE), Teradyne, Inc. (TER)

The shares of Coeur Mining, Inc. (NYSE:CDE) and Teradyne, Inc. (NYSE:TER) were among the active stocks of the last trading sessions. Coeur Mining, Inc. (NYSE:CDE) soared to 5.97% closing at the price of $5.5 whereas the shares of Teradyne, Inc. (NYSE:TER) soared 0.62% with the increase of 0.2 points closing at the price of $32.65. Coeur Mining, Inc. has currently decrease -36.34% in its stock over the period of 6-months while its rival Teradyne, Inc. subtracted -24.89% 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 Coeur Mining, Inc. (NYSE:CDE) is 1.9% while the ROI of Teradyne, Inc. (NYSE:TER) is 19.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CDE’s EBITDA Margin is 6.34 whereas TER’s is 10.19.

Both the profitability ratios suggest that Teradyne, Inc. (NYSE:TER) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Coeur Mining, Inc. (NYSE:CDE) reported $0.01/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.01/share Thus beating the analyst Estimates with a Surprise Factor of 200 Percent. While, Teradyne, Inc. (NYSE:TER) reported EPS of $0.59/share in the last quarter. The analysts projected EPS of $0.49/share depicting a Surprise of 20.4 Percent.

Taking a look at Earnings per Share, Coeur Mining, Inc. tends to be beating the analyst estimates more than Teradyne, Inc.. so CDE is more profitable than TER.

Technical Analysis of Coeur Mining, Inc. & Teradyne, Inc.

Moving average convergence divergence (MACD) shows that Coeur Mining, Inc. (NYSE:CDE) is on a PRICE RELATIVITY trend While Teradyne, Inc. (NYSE:TER) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Coeur Mining, Inc. was in BULLISH territory and Teradyne, Inc. was in BEARISH territory.

CDE’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While TER’s candle is BULLISH with HIGH.

EPS Growth Rate: CDE’s 0% versus TER’s 13.88%

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 Coeur Mining, Inc. (NYSE:CDE) is predicted at 0% while Teradyne, Inc. (NYSE:TER) stands at 13.88%. These numbers suggest that TER 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 CDE stands at 2.2 while TER is at 4.2 whereas the debt ratio of the prior is 0.51 while the debt ratio of the later is 0.21.

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 2 for CDE and 2.2 for TER which means CDE has Buy rating whereas TER 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 CDE is $9.56 which is 42.47% of its current price while TER has price target of 44.61 which is 26.81% 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.

CDE currently has price to earning P/E ratio of 152.78 whereas TER has 17.47 while the forward P/E ratio for the prior stands at 26.44 and for the later it depicts the value of 12.5.

The price to Book P/B for CDE is 1.24, Price to Sale is at 1.47 and for TER these ratios stand at 3.58 and 3.14.