The shares of TherapeuticsMD, Inc. (NASDAQ:TXMD) and Mobile TeleSystems OJSC (NYSE:MBT) were among the active stocks of the last trading sessions. TherapeuticsMD, Inc. (NASDAQ:TXMD) declined to -4.3% closing at the price of $5.56 whereas the shares of Mobile TeleSystems OJSC (NYSE:MBT) declined -2.1% with the decrease of -0.18 points closing at the price of $8.4. TherapeuticsMD, Inc. has currently decrease -2.63% in its stock over the period of 6-months while its rival Mobile TeleSystems OJSC subtracted -16.91% 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 TherapeuticsMD, Inc. (NASDAQ:TXMD) is -59.8% while the ROI of Mobile TeleSystems OJSC (NYSE:MBT) is 18.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TXMD’s EBITDA Margin is -12.54 whereas MBT’s is 3.61.
Both the profitability ratios suggest that Mobile TeleSystems OJSC (NYSE:MBT) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
TherapeuticsMD, Inc. (NASDAQ:TXMD) reported $-0.15/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.12/share Thus lagging the analyst Estimates with a Surprise Factor of -25 Percent. While, Mobile TeleSystems OJSC (NYSE:MBT) reported EPS of $0.23/share in the last quarter. The analysts projected EPS of $0.25/share depicting a Surprise of -8 Percent.
Taking a look at Earnings per Share, Mobile TeleSystems OJSC tends to be beating the analyst estimates more than TherapeuticsMD, Inc.. so MBT is more profitable than TXMD.
Technical Analysis of TherapeuticsMD, Inc. & Mobile TeleSystems OJSC
Moving average convergence divergence (MACD) shows that TherapeuticsMD, Inc. (NASDAQ:TXMD) is on a PRICE RELATIVITY trend While Mobile TeleSystems OJSC (NYSE:MBT) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the TherapeuticsMD, Inc. was in BEARISH territory and Mobile TeleSystems OJSC was in BULLISH territory.
TXMD’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While MBT’s candle is BEARISH with HIGH.
EPS Growth Rate: TXMD’s 15% versus MBT’s 0.16%
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 TherapeuticsMD, Inc. (NASDAQ:TXMD) is predicted at 15% while Mobile TeleSystems OJSC (NYSE:MBT) stands at 0.16%. These numbers suggest that TXMD 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 TXMD stands at 7.9 while MBT is at 0.9 whereas the debt ratio of the prior is 0.94 while the debt ratio of the later is 4.28.
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 1.6 for TXMD and 2 for MBT which means TXMD has Buy rating whereas MBT 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 TXMD is $15.86 which is 64.94% of its current price while MBT has price target of 11.08 which is 24.19% 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.
TXMD currently has price to earning P/E ratio of 0 whereas MBT has 9.2 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 8.2.
The price to Book P/B for TXMD is 15.44, Price to Sale is at 83.17 and for MBT these ratios stand at 4.88 and 1.2.