The shares of First Majestic Silver Corp. (NYSE:AG) and Mosaic Company (The) (NYSE:MOS) were among the active stocks of the last trading sessions. First Majestic Silver Corp. (NYSE:AG) soared to 8.74% closing at the price of $6.22 whereas the shares of Mosaic Company (The) (NYSE:MOS) soared 1.18% with the increase of 0.38 points closing at the price of $32.69. First Majestic Silver Corp. has currently decrease -6.61% in its stock over the period of 6-months while its rival Mosaic Company (The) added 31.6% 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 Majestic Silver Corp. (NYSE:AG) is 0% while the ROI of Mosaic Company (The) (NYSE:MOS) is 2.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AG’s EBITDA Margin is 20.05 whereas MOS’s is 11.39.
Both the profitability ratios suggest a mixed sentiment for First Majestic Silver Corp. (NYSE:AG) and Mosaic Company (The) (NYSE:MOS).
EPS & Surprise Factor
First Majestic Silver Corp. (NYSE:AG) reported $0/share EPS for the previous quarter where analysts were predicting an EPS to be $0.01/share Thus lagging the analyst Estimates with a Surprise Factor of -100 Percent. While, Mosaic Company (The) (NYSE:MOS) reported EPS of $0.4/share in the last quarter. The analysts projected EPS of $0.38/share depicting a Surprise of 5.3 Percent.
Taking a look at Earnings per Share, Mosaic Company (The) tends to be beating the analyst estimates more than First Majestic Silver Corp.. so MOS is more profitable than AG.
Technical Analysis of First Majestic Silver Corp. & Mosaic Company (The)
Moving average convergence divergence (MACD) shows that First Majestic Silver Corp. (NYSE:AG) is on a PRICE RELATIVITY trend While Mosaic Company (The) (NYSE:MOS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the First Majestic Silver Corp. was in BULLISH territory and Mosaic Company (The) was in BEARISH territory.
AG’s current statistics gauge that the stock candle is BULLISH with MEDIUM volatility. While MOS’s candle is BULLISH with LOW.
EPS Growth Rate: AG’s 46.8% versus MOS’s 29.6%
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 Majestic Silver Corp. (NYSE:AG) is predicted at 46.8% while Mosaic Company (The) (NYSE:MOS) stands at 29.6%. These numbers suggest that AG 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 AG stands at 0 while MOS is at 1.6 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.49.
The values of the both ratios suggest that MOS 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 2.3 for AG and 2.3 for MOS which means AG has Hold rating whereas MOS 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 AG is $9.54 which is 34.8% of its current price while MOS has price target of 35.33 which is 7.47% 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.
AG currently has price to earning P/E ratio of 0 whereas MOS has 32.46 while the forward P/E ratio for the prior stands at 88.86 and for the later it depicts the value of 14.83.
The price to Book P/B for AG is 1.61, Price to Sale is at 3.94 and for MOS these ratios stand at 1.24 and 1.56.