The shares of Synergy Pharmaceuticals, Inc. (NASDAQ:SGYP) and Constellation Brands Inc (NYSE:STZ) were among the active stocks of the last trading sessions. Synergy Pharmaceuticals, Inc. (NASDAQ:SGYP) soared to 0.68% closing at the price of $1.47 whereas the shares of Constellation Brands Inc (NYSE:STZ) declined -0.93% with the decrease of -2.11 points closing at the price of $225.09. Synergy Pharmaceuticals, Inc. has currently decrease -16% in its stock over the period of 6-months while its rival Constellation Brands Inc subtracted -1.09% 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 Synergy Pharmaceuticals, Inc. (NASDAQ:SGYP) is -201.1% while the ROI of Constellation Brands Inc (NYSE:STZ) is 10%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SGYP’s EBITDA Margin is -2.73 whereas STZ’s is 18.23.
Both the profitability ratios suggest that Constellation Brands Inc (NYSE:STZ) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Synergy Pharmaceuticals, Inc. (NASDAQ:SGYP) reported $-0.12/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.15/share Thus beating the analyst Estimates with a Surprise Factor of 20 Percent. While, Constellation Brands Inc (NYSE:STZ) reported EPS of $2.87/share in the last quarter. The analysts projected EPS of $2.6/share depicting a Surprise of 10.4 Percent.
Taking a look at Earnings per Share, Synergy Pharmaceuticals, Inc. tends to be beating the analyst estimates more than Constellation Brands Inc. so SGYP is more profitable than STZ.
Technical Analysis of Synergy Pharmaceuticals, Inc. & Constellation Brands Inc
Moving average convergence divergence (MACD) shows that Synergy Pharmaceuticals, Inc. (NASDAQ:SGYP) is on a PRICE RELATIVITY trend While Constellation Brands Inc (NYSE:STZ) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Synergy Pharmaceuticals, Inc. was in BEARISH territory and Constellation Brands Inc was in BULLISH territory.
SGYP’s current statistics gauge that the stock candle is NEUTRAL with MEDIUM volatility. While STZ’s candle is BEARISH with MEDIUM.
EPS Growth Rate: SGYP’s 0% versus STZ’s 12%
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 Synergy Pharmaceuticals, Inc. (NASDAQ:SGYP) is predicted at 0% while Constellation Brands Inc (NYSE:STZ) stands at 12%. These numbers suggest that STZ 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 SGYP stands at 2.8 while STZ is at 1.7 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.88.
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 SGYP and 2.2 for STZ which means SGYP has Buy rating whereas STZ 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 SGYP is $6.24 which is 76.44% of its current price while STZ has price target of 248.68 which is 9.49% 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.
SGYP currently has price to earning P/E ratio of 0 whereas STZ has 16.88 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 21.87.
The price to Book P/B for SGYP is 0, Price to Sale is at 10.31 and for STZ these ratios stand at 3.81 and 5.21.