The shares of Gores Holdings II, Inc. (NASDAQ:GSHT) and Tata Motors Ltd (NYSE:TTM) were among the active stocks of the last trading sessions. Gores Holdings II, Inc. (NASDAQ:GSHT) declined to -0.97% closing at the price of $10.18 whereas the shares of Tata Motors Ltd (NYSE:TTM) declined -0.82% with the decrease of -0.1 points closing at the price of $12.08. Gores Holdings II, Inc. has currently increase 2% in its stock over the period of 6-months while its rival Tata Motors Ltd subtracted -54.79% 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 Gores Holdings II, Inc. (NASDAQ:GSHT) is 0% while the ROI of Tata Motors Ltd (NYSE:TTM) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, GSHT’s EBITDA Margin is NOT AVAILABLE whereas TTM’s is 4.99.
Both the profitability ratios suggest a mixed sentiment for Gores Holdings II, Inc. (NASDAQ:GSHT) and Tata Motors Ltd (NYSE:TTM).
EPS & Surprise Factor
Technical Analysis of Gores Holdings II, Inc. & Tata Motors Ltd
Moving average convergence divergence (MACD) shows that Gores Holdings II, Inc. (NASDAQ:GSHT) is on a PRICE RELATIVITY trend While Tata Motors Ltd (NYSE:TTM) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Gores Holdings II, Inc. was in BEARISH territory and Tata Motors Ltd was in BEARISH territory.
GSHT’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While TTM’s candle is BEARISH with HIGH.
EPS Growth Rate: GSHT’s 0% versus TTM’s 24.6%
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 Gores Holdings II, Inc. (NASDAQ:GSHT) is predicted at 0% while Tata Motors Ltd (NYSE:TTM) stands at 24.6%. These numbers suggest that TTM 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 GSHT stands at 0 while TTM is at 0 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 0 for GSHT and 2 for TTM which means GSHT has Strong Buy rating whereas TTM has Buy rating.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
GSHT currently has price to earning P/E ratio of 0 whereas TTM has 14.38 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 0.
The price to Book P/B for GSHT is 101.8, Price to Sale is at 0 and for TTM these ratios stand at 0.59 and 0.93.