The shares of Packaging Corporation of America (NYSE:PKG) and vTv Therapeutics Inc. (NASDAQ:VTVT) were among the active stocks of the last trading sessions. Packaging Corporation of America (NYSE:PKG) declined to -0.66% closing at the price of $88.36 whereas the shares of vTv Therapeutics Inc. (NASDAQ:VTVT) declined -2.59% with the decrease of -0.09 points closing at the price of $3.39. Packaging Corporation of America has currently decrease -22.18% in its stock over the period of 6-months while its rival vTv Therapeutics Inc. added 346.05% 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 Packaging Corporation of America (NYSE:PKG) is 13.4% while the ROI of vTv Therapeutics Inc. (NASDAQ:VTVT) is 34.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PKG’s EBITDA Margin is 8.64 whereas VTVT’s is -2.22.
Both the profitability ratios suggest a mixed sentiment for Packaging Corporation of America (NYSE:PKG) and vTv Therapeutics Inc. (NASDAQ:VTVT).
EPS & Surprise Factor
Packaging Corporation of America (NYSE:PKG) reported $2.08/share EPS for the previous quarter where analysts were predicting an EPS to be $1.97/share Thus beating the analyst Estimates with a Surprise Factor of 5.6 Percent. While, vTv Therapeutics Inc. (NASDAQ:VTVT) reported EPS of $-0.31/share in the last quarter. The analysts projected EPS of $-0.25/share depicting a Surprise of -24 Percent.
Taking a look at Earnings per Share, Packaging Corporation of America tends to be beating the analyst estimates more than vTv Therapeutics Inc.. so PKG is more profitable than VTVT.
Technical Analysis of Packaging Corporation of America & vTv Therapeutics Inc.
Moving average convergence divergence (MACD) shows that Packaging Corporation of America (NYSE:PKG) is on a PRICE RELATIVITY trend While vTv Therapeutics Inc. (NASDAQ:VTVT) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Packaging Corporation of America was in BEARISH territory and vTv Therapeutics Inc. was in BULLISH territory.
PKG’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While VTVT’s candle is BEARISH with HIGH.
EPS Growth Rate: PKG’s 12.43% versus VTVT’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 Packaging Corporation of America (NYSE:PKG) is predicted at 12.43% while vTv Therapeutics Inc. (NASDAQ:VTVT) stands at 0%. These numbers suggest that PKG 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 PKG stands at 2.7 while VTVT is at 0.2 whereas the debt ratio of the prior is 1.05 while the debt ratio of the later is 0.
The values of the both ratios suggest that PKG 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 2.1 for PKG and 3 for VTVT which means PKG has Hold rating whereas VTVT 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 PKG is $127.09 which is 30.47% of its current price while VTVT has price target of 3 which is -13% 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.
PKG currently has price to earning P/E ratio of 13.65 whereas VTVT has 0 while the forward P/E ratio for the prior stands at 10.1 and for the later it depicts the value of 0.
The price to Book P/B for PKG is 3.47, Price to Sale is at 1.24 and for VTVT these ratios stand at 0 and 19.37.