The shares of Maxim Integrated Products, Inc. (NASDAQ:MXIM) and Teladoc, Inc. (NYSE:TDOC) were among the active stocks of the last trading sessions. Maxim Integrated Products, Inc. (NASDAQ:MXIM) soared to 1.46% closing at the price of $51.52 whereas the shares of Teladoc, Inc. (NYSE:TDOC) declined -1.58% with the decrease of -1 points closing at the price of $62.43. Maxim Integrated Products, Inc. has currently decrease -10.76% in its stock over the period of 6-months while its rival Teladoc, Inc. added 51.71% 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 Maxim Integrated Products, Inc. (NASDAQ:MXIM) is 21.2% while the ROI of Teladoc, Inc. (NYSE:TDOC) is -13%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, MXIM’s EBITDA Margin is 13.79 whereas TDOC’s is -142.06.
Both the profitability ratios suggest that Maxim Integrated Products, Inc. (NASDAQ:MXIM) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Maxim Integrated Products, Inc. (NASDAQ:MXIM) reported $0.73/share EPS for the previous quarter where analysts were predicting an EPS to be $0.7/share Thus beating the analyst Estimates with a Surprise Factor of 4.3 Percent. While, Teladoc, Inc. (NYSE:TDOC) reported EPS of $-0.4/share in the last quarter. The analysts projected EPS of $-0.37/share depicting a Surprise of -8.1 Percent.
Taking a look at Earnings per Share, Maxim Integrated Products, Inc. tends to be beating the analyst estimates more than Teladoc, Inc.. so MXIM is more profitable than TDOC.
Technical Analysis of Maxim Integrated Products, Inc. & Teladoc, Inc.
Moving average convergence divergence (MACD) shows that Maxim Integrated Products, Inc. (NASDAQ:MXIM) is on a PRICE RELATIVITY trend While Teladoc, Inc. (NYSE:TDOC) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Maxim Integrated Products, Inc. was in BEARISH territory and Teladoc, Inc. was in BEARISH territory.
MXIM’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While TDOC’s candle is BULLISH with HIGH.
EPS Growth Rate: MXIM’s 13.1% versus TDOC’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 Maxim Integrated Products, Inc. (NASDAQ:MXIM) is predicted at 13.1% while Teladoc, Inc. (NYSE:TDOC) stands at 0%. These numbers suggest that MXIM 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 MXIM stands at 4 while TDOC is at 3.1 whereas the debt ratio of the prior is 0.77 while the debt ratio of the later is 0.
The values of the both ratios suggest that MXIM is more suitable investment when the liquidity and risk is the main concern.
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 2.6 for MXIM and 1.8 for TDOC which means MXIM has Hold rating whereas TDOC 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 MXIM is $62.79 which is 17.95% of its current price while TDOC has price target of 87.59 which is 28.72% 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.
MXIM currently has price to earning P/E ratio of 20.41 whereas TDOC has 0 while the forward P/E ratio for the prior stands at 15.61 and for the later it depicts the value of 0.
The price to Book P/B for MXIM is 7.46, Price to Sale is at 6.02 and for TDOC these ratios stand at 5.62 and 13.55.