The shares of CRISPR Therapeutics AG (NASDAQ:CRSP) and New York Times Company (The) (NYSE:NYT) were among the active stocks of the last trading sessions. CRISPR Therapeutics AG (NASDAQ:CRSP) soared to 0.85% closing at the price of $36.95 whereas the shares of New York Times Company (The) (NYSE:NYT) soared 0.16% with the increase of 0.04 points closing at the price of $24.84. CRISPR Therapeutics AG has currently decrease -28.63% in its stock over the period of 6-months while its rival New York Times Company (The) added 9.43% 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 CRISPR Therapeutics AG (NASDAQ:CRSP) is -32% while the ROI of New York Times Company (The) (NYSE:NYT) is 6.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CRSP’s EBITDA Margin is -18.13 whereas NYT’s is 14.74.
Both the profitability ratios suggest that New York Times Company (The) (NYSE:NYT) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
CRISPR Therapeutics AG (NASDAQ:CRSP) reported $-0.82/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.63/share Thus lagging the analyst Estimates with a Surprise Factor of -30.2 Percent. While, New York Times Company (The) (NYSE:NYT) reported EPS of $0.17/share in the last quarter. The analysts projected EPS of $0.15/share depicting a Surprise of 13.3 Percent.
Taking a look at Earnings per Share, New York Times Company (The) tends to be beating the analyst estimates more than CRISPR Therapeutics AG. so NYT is more profitable than CRSP.
Technical Analysis of CRISPR Therapeutics AG & New York Times Company (The)
Moving average convergence divergence (MACD) shows that CRISPR Therapeutics AG (NASDAQ:CRSP) is on a PRICE RELATIVITY trend While New York Times Company (The) (NYSE:NYT) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the CRISPR Therapeutics AG was in BEARISH territory and New York Times Company (The) was in BULLISH territory.
CRSP’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While NYT’s candle is BULLISH with HIGH.
EPS Growth Rate: CRSP’s 0% versus NYT’s 16.1%
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 CRISPR Therapeutics AG (NASDAQ:CRSP) is predicted at 0% while New York Times Company (The) (NYSE:NYT) stands at 16.1%. These numbers suggest that NYT 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 CRSP stands at 17.9 while NYT is at 2 whereas the debt ratio of the prior is 0 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.
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 2.4 for CRSP and 2.7 for NYT which means CRSP has Hold rating whereas NYT 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 CRSP is $68.07 which is 45.72% of its current price while NYT has price target of 24.8 which is -0.16% 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.
CRSP currently has price to earning P/E ratio of 0 whereas NYT has 45.49 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 25.37.
The price to Book P/B for CRSP is 6.53, Price to Sale is at 49.73 and for NYT these ratios stand at 4.18 and 2.4.