The shares of AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) and Pitney Bowes Inc. (NYSE:PBI) were among the active stocks of the last trading sessions. AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) declined to -0.72% closing at the price of $4.15 whereas the shares of Pitney Bowes Inc. (NYSE:PBI) declined -3.09% with the decrease of -0.22 points closing at the price of $6.91. AcelRx Pharmaceuticals, Inc. has currently increase 71.13% in its stock over the period of 6-months while its rival Pitney Bowes Inc. subtracted -35.6% 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 AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) is -5.9% while the ROI of Pitney Bowes Inc. (NYSE:PBI) is 8.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ACRX’s EBITDA Margin is -7.06 whereas PBI’s is 6.45.
Both the profitability ratios suggest that Pitney Bowes Inc. (NYSE:PBI) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) reported $-0.2/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.2/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Pitney Bowes Inc. (NYSE:PBI) reported EPS of $0.26/share in the last quarter. The analysts projected EPS of $0.26/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Pitney Bowes Inc. tends to be beating the analyst estimates more than AcelRx Pharmaceuticals, Inc.. so PBI is more profitable than ACRX.
Technical Analysis of AcelRx Pharmaceuticals, Inc. & Pitney Bowes Inc.
Moving average convergence divergence (MACD) shows that AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) is on a PRICE RELATIVITY trend While Pitney Bowes Inc. (NYSE:PBI) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the AcelRx Pharmaceuticals, Inc. was in BULLISH territory and Pitney Bowes Inc. was in BULLISH territory.
ACRX’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While PBI’s candle is BEARISH with MEDIUM.
EPS Growth Rate: ACRX’s 0% versus PBI’s 4%
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 AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) is predicted at 0% while Pitney Bowes Inc. (NYSE:PBI) stands at 4%. These numbers suggest that PBI 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 ACRX stands at 4 while PBI is at 1.2 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 18.28.
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 2 for ACRX and 2.2 for PBI which means ACRX has Buy rating whereas PBI 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 ACRX is $6.2 which is 33.06% of its current price while PBI has price target of 11.67 which is 40.79% 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.
ACRX currently has price to earning P/E ratio of 0 whereas PBI has 6.49 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 5.5.
The price to Book P/B for ACRX is 0, Price to Sale is at 73.97 and for PBI these ratios stand at 6.64 and 0.36.