Which Stock is more profitable? Fortive Corporation (FTV) or Spherix Incorporated (SPEX)

The shares of Fortive Corporation (NYSE:FTV) and Spherix Incorporated (NASDAQ:SPEX) were among the active stocks of the last trading sessions. Fortive Corporation (NYSE:FTV) declined to -2.04% closing at the price of $78.58 whereas the shares of Spherix Incorporated (NASDAQ:SPEX) soared 3.96% with the increase of 0.04 points closing at the price of $1.05. Fortive Corporation has currently increase 5.19% in its stock over the period of 6-months while its rival Spherix Incorporated subtracted -1.87% 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 Fortive Corporation (NYSE:FTV) is 13.5% while the ROI of Spherix Incorporated (NASDAQ:SPEX) is -93.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, FTV’s EBITDA Margin is 18.4 whereas SPEX’s is -1.31.

Both the profitability ratios suggest that Fortive Corporation (NYSE:FTV) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor
Technical Analysis of Fortive Corporation & Spherix Incorporated

Moving average convergence divergence (MACD) shows that Fortive Corporation (NYSE:FTV) is on a PRICE RELATIVITY trend While Spherix Incorporated (NASDAQ:SPEX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Fortive Corporation was in BEARISH territory and Spherix Incorporated was in BULLISH territory.

FTV’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While SPEX’s candle is BEARISH with HIGH.

EPS Growth Rate: FTV’s 12.4% versus SPEX’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 Fortive Corporation (NYSE:FTV) is predicted at 12.4% while Spherix Incorporated (NASDAQ:SPEX) stands at 0%. These numbers suggest that FTV 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 FTV stands at 2 while SPEX is at 4.3 whereas the debt ratio of the prior is 0.66 while the debt ratio of the later is 0.

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 2.3 for FTV and 0 for SPEX which means FTV has Hold rating whereas SPEX has Strong 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 FTV is $86.83 which is 9.5% of its current price while SPEX has price target of 19 which is 94.47% 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.

FTV currently has price to earning P/E ratio of 25.3 whereas SPEX has 0 while the forward P/E ratio for the prior stands at 20.71 and for the later it depicts the value of 0.

The price to Book P/B for FTV is 4.88, Price to Sale is at 3.87 and for SPEX these ratios stand at 1.06 and 14.87.