The shares of First BanCorp. (NYSE:FBP) and Hologic, Inc. (NASDAQ:HOLX) were among the active stocks of the last trading sessions. First BanCorp. (NYSE:FBP) declined to -0.99% closing at the price of $9.01 whereas the shares of Hologic, Inc. (NASDAQ:HOLX) declined -3.01% with the decrease of -1.22 points closing at the price of $39.34. First BanCorp. has currently increase 34.08% in its stock over the period of 6-months while its rival Hologic, Inc. added 6.27% 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 First BanCorp. (NYSE:FBP) is 17.3% while the ROI of Hologic, Inc. (NASDAQ:HOLX) is 14.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, FBP’s EBITDA Margin is NOT AVAILABLE whereas HOLX’s is 13.21.
Both the profitability ratios suggest that First BanCorp. (NYSE:FBP) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
First BanCorp. (NYSE:FBP) reported $0.14/share EPS for the previous quarter where analysts were predicting an EPS to be $0.13/share Thus beating the analyst Estimates with a Surprise Factor of 7.7 Percent. While, Hologic, Inc. (NASDAQ:HOLX) reported EPS of $0.58/share in the last quarter. The analysts projected EPS of $0.56/share depicting a Surprise of 3.6 Percent.
Taking a look at Earnings per Share, First BanCorp. tends to be beating the analyst estimates more than Hologic, Inc.. so FBP is more profitable than HOLX.
Technical Analysis of First BanCorp. & Hologic, Inc.
Moving average convergence divergence (MACD) shows that First BanCorp. (NYSE:FBP) is on a PRICE RELATIVITY trend While Hologic, Inc. (NASDAQ:HOLX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the First BanCorp. was in BULLISH territory and Hologic, Inc. was in BEARISH territory.
FBP’s current statistics gauge that the stock candle is BEARISH with LOW volatility. While HOLX’s candle is BEARISH with MEDIUM.
EPS Growth Rate: FBP’s 35% versus HOLX’s 8.55%
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 First BanCorp. (NYSE:FBP) is predicted at 35% while Hologic, Inc. (NASDAQ:HOLX) stands at 8.55%. These numbers suggest that FBP 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 FBP stands at 0 while HOLX is at 1.3 whereas the debt ratio of the prior is 0.1 while the debt ratio of the later is 1.34.
The values of the both ratios suggest that HOLX 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 1.5 for FBP and 2.3 for HOLX which means FBP has Buy rating whereas HOLX 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 FBP is $10.13 which is 11.06% of its current price while HOLX has price target of 44.8 which is 12.19% 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.
FBP currently has price to earning P/E ratio of 26.04 whereas HOLX has 0 while the forward P/E ratio for the prior stands at 13.76 and for the later it depicts the value of 16.22.
The price to Book P/B for FBP is 1.04, Price to Sale is at 3.28 and for HOLX these ratios stand at 4.4 and 3.34.