The shares of CorMedix Inc (NYSE:CRMD) and Energy Transfer Equity, L.P. (NYSE:ETE) were among the active stocks of the last trading sessions. CorMedix Inc (NYSE:CRMD) soared to 23.33% closing at the price of $1.85 whereas the shares of Energy Transfer Equity, L.P. (NYSE:ETE) declined -1.99% with the decrease of -0.34 points closing at the price of $16.73. CorMedix Inc has currently increase 684.23% in its stock over the period of 6-months while its rival Energy Transfer Equity, L.P. added 13.42% 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 CorMedix Inc (NYSE:CRMD) is 0% while the ROI of Energy Transfer Equity, L.P. (NYSE:ETE) is 6.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CRMD’s EBITDA Margin is -2.86 whereas ETE’s is 13.64.
Both the profitability ratios suggest that Energy Transfer Equity, L.P. (NYSE:ETE) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
CorMedix Inc (NYSE:CRMD) reported $-0.1/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.1/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Energy Transfer Equity, L.P. (NYSE:ETE) reported EPS of $0.31/share in the last quarter. The analysts projected EPS of $0.46/share depicting a Surprise of -32.6 Percent.
Taking a look at Earnings per Share, CorMedix Inc tends to be beating the analyst estimates more than Energy Transfer Equity, L.P.. so CRMD is more profitable than ETE.
Technical Analysis of CorMedix Inc & Energy Transfer Equity, L.P.
Moving average convergence divergence (MACD) shows that CorMedix Inc (NYSE:CRMD) is on a PRICE RELATIVITY trend While Energy Transfer Equity, L.P. (NYSE:ETE) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the CorMedix Inc was in BULLISH territory and Energy Transfer Equity, L.P. was in BEARISH territory.
CRMD’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While ETE’s candle is BEARISH with HIGH.
EPS Growth Rate: CRMD’s 0% versus ETE’s 13%
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 CorMedix Inc (NYSE:CRMD) is predicted at 0% while Energy Transfer Equity, L.P. (NYSE:ETE) stands at 13%. These numbers suggest that ETE 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 CRMD stands at 0.5 while ETE is at 1 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 for CRMD and 1.6 for ETE which means CRMD has Buy rating whereas ETE has Buy 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 CRMD is $3 which is 38.33% of its current price while ETE has price target of 21.53 which is 22.29% 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.
CRMD currently has price to earning P/E ratio of 0 whereas ETE has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 8.59.
The price to Book P/B for CRMD is 0, Price to Sale is at 821.86 and for ETE these ratios stand at 0 and 0.4.