The shares of Seagate Technology PLC (NASDAQ:STX) and Under Armour, Inc. (NYSE:UA) were among the active stocks of the last trading sessions. Seagate Technology PLC (NASDAQ:STX) declined to -0.73% closing at the price of $43.34 whereas the shares of Under Armour, Inc. (NYSE:UA) soared 0.06% with the increase of 0.01 points closing at the price of $16.82. Seagate Technology PLC has currently decrease -28.49% in its stock over the period of 6-months while its rival Under Armour, Inc. added 17.29% 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 Seagate Technology PLC (NASDAQ:STX) is 29.6% while the ROI of Under Armour, Inc. (NYSE:UA) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, STX’s EBITDA Margin is 7.06 whereas UA’s is 25.68.
Both the profitability ratios suggest a mixed sentiment for Seagate Technology PLC (NASDAQ:STX) and Under Armour, Inc. (NYSE:UA).
EPS & Surprise Factor
Seagate Technology PLC (NASDAQ:STX) reported $1.62/share EPS for the previous quarter where analysts were predicting an EPS to be $1.45/share Thus beating the analyst Estimates with a Surprise Factor of 11.7 Percent. While, Under Armour, Inc. (NYSE:UA) reported EPS of $-0.08/share in the last quarter. The analysts projected EPS of $-0.08/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Seagate Technology PLC tends to be beating the analyst estimates more than Under Armour, Inc.. so STX is more profitable than UA.
Technical Analysis of Seagate Technology PLC & Under Armour, Inc.
Moving average convergence divergence (MACD) shows that Seagate Technology PLC (NASDAQ:STX) is on a PRICE RELATIVITY trend While Under Armour, Inc. (NYSE:UA) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Seagate Technology PLC was in BEARISH territory and Under Armour, Inc. was in BEARISH territory.
STX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While UA’s candle is BEARISH with HIGH.
EPS Growth Rate: STX’s 7.12% versus UA’s 5%
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 Seagate Technology PLC (NASDAQ:STX) is predicted at 7.12% while Under Armour, Inc. (NYSE:UA) stands at 5%. These numbers suggest that STX 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 STX stands at 1.4 while UA is at 0 whereas the debt ratio of the prior is 2.89 while the debt ratio of the later is 0.
The values of the both ratios suggest that STX 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 2.9 for STX and 3 for UA which means STX has Hold rating whereas UA 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 STX is $57.05 which is 24.03% of its current price while UA has price target of 13 which is -29.38% 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.
STX currently has price to earning P/E ratio of 7.44 whereas UA has 0 while the forward P/E ratio for the prior stands at 7.17 and for the later it depicts the value of 49.47.
The price to Book P/B for STX is 7.5, Price to Sale is at 1.11 and for UA these ratios stand at 3.89 and 0.