The shares of Atlassian Corporation Plc (NASDAQ:TEAM) and Iconix Brand Group, Inc. (NASDAQ:ICON) were among the active stocks of the last trading sessions. Atlassian Corporation Plc (NASDAQ:TEAM) declined to -2.08% closing at the price of $81.89 whereas the shares of Iconix Brand Group, Inc. (NASDAQ:ICON) declined -6.34% with the decrease of -0.01 points closing at the price of $0.19. Atlassian Corporation Plc has currently increase 40.69% in its stock over the period of 6-months while its rival Iconix Brand Group, Inc. subtracted -78.9% 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 Atlassian Corporation Plc (NASDAQ:TEAM) is -3.5% while the ROI of Iconix Brand Group, Inc. (NASDAQ:ICON) is -62.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TEAM’s EBITDA Margin is 4171.04 whereas ICON’s is 7.99.
Both the profitability ratios suggest that Atlassian Corporation Plc (NASDAQ:TEAM) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Atlassian Corporation Plc (NASDAQ:TEAM) 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, Iconix Brand Group, Inc. (NASDAQ:ICON) reported EPS of $0.12/share in the last quarter. The analysts projected EPS of $0.12/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Atlassian Corporation Plc tends to be beating the analyst estimates more than Iconix Brand Group, Inc.. so TEAM is more profitable than ICON.
Technical Analysis of Atlassian Corporation Plc & Iconix Brand Group, Inc.
Moving average convergence divergence (MACD) shows that Atlassian Corporation Plc (NASDAQ:TEAM) is on a PRICE RELATIVITY trend While Iconix Brand Group, Inc. (NASDAQ:ICON) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Atlassian Corporation Plc was in BEARISH territory and Iconix Brand Group, Inc. was in BEARISH territory.
TEAM’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While ICON’s candle is BEARISH with HIGH.
EPS Growth Rate: TEAM’s 28.4% versus ICON’s 15%
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 Atlassian Corporation Plc (NASDAQ:TEAM) is predicted at 28.4% while Iconix Brand Group, Inc. (NASDAQ:ICON) stands at 15%. These numbers suggest that TEAM 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 TEAM stands at 3.9 while ICON is at 1.8 whereas the debt ratio of the prior is 0.92 while the debt ratio of the later is 0.
The values of the both ratios suggest that TEAM 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 2.3 for TEAM and 3 for ICON which means TEAM has Hold rating whereas ICON has Hold rating.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
TEAM currently has price to earning P/E ratio of 0 whereas ICON has 0 while the forward P/E ratio for the prior stands at 86.11 and for the later it depicts the value of 0.
The price to Book P/B for TEAM is 21.49, Price to Sale is at 21.21 and for ICON these ratios stand at 0 and 0.06.