The shares of PagSeguro Digital Ltd. (NYSE:PAGS) and Tiffany & Co. (NYSE:TIF) were among the active stocks of the last trading sessions. PagSeguro Digital Ltd. (NYSE:PAGS) soared to 2.52% closing at the price of $26.46 whereas the shares of Tiffany & Co. (NYSE:TIF) soared 0.97% with the increase of 1.07 points closing at the price of $111.45. PagSeguro Digital Ltd. has currently decrease -23.22% in its stock over the period of 6-months while its rival Tiffany & Co. added 12.55% 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 PagSeguro Digital Ltd. (NYSE:PAGS) is 68.7% while the ROI of Tiffany & Co. (NYSE:TIF) is 13%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PAGS’s EBITDA Margin is -159.6 whereas TIF’s is 14.1.
Both the profitability ratios suggest a mixed sentiment for PagSeguro Digital Ltd. (NYSE:PAGS) and Tiffany & Co. (NYSE:TIF).
EPS & Surprise Factor
PagSeguro Digital Ltd. (NYSE:PAGS) reported $0.2/share EPS for the previous quarter where analysts were predicting an EPS to be $0.19/share Thus beating the analyst Estimates with a Surprise Factor of 5.3 Percent. While, Tiffany & Co. (NYSE:TIF) reported EPS of $1.17/share in the last quarter. The analysts projected EPS of $1.01/share depicting a Surprise of 15.8 Percent.
Taking a look at Earnings per Share, Tiffany & Co. tends to be beating the analyst estimates more than PagSeguro Digital Ltd.. so TIF is more profitable than PAGS.
Technical Analysis of PagSeguro Digital Ltd. & Tiffany & Co.
Moving average convergence divergence (MACD) shows that PagSeguro Digital Ltd. (NYSE:PAGS) is on a PRICE RELATIVITY trend While Tiffany & Co. (NYSE:TIF) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the PagSeguro Digital Ltd. was in territory and Tiffany & Co. was in BEARISH territory.
PAGS’s current statistics gauge that the stock candle is with volatility. While TIF’s candle is BULLISH with HIGH.
EPS Growth Rate: PAGS’s 15.3% versus TIF’s 11.22%
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 PagSeguro Digital Ltd. (NYSE:PAGS) is predicted at 15.3% while Tiffany & Co. (NYSE:TIF) stands at 11.22%. These numbers suggest that PAGS 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 PAGS stands at 2.7 while TIF is at 6 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.32.
The values of the both ratios suggest that TIF 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 2.6 for PAGS and 2.3 for TIF which means PAGS has Hold rating whereas TIF 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 PAGS is $33.22 which is 20.35% of its current price while TIF has price target of 141.08 which is 21% 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.
PAGS currently has price to earning P/E ratio of 31.96 whereas TIF has 23.49 while the forward P/E ratio for the prior stands at 21.48 and for the later it depicts the value of 20.41.
The price to Book P/B for PAGS is 5.28, Price to Sale is at 10 and for TIF these ratios stand at 4.49 and 3.06.