Which is the most compelling pick right now? BHP Billiton Limited (BHP) or Tonix Pharmaceuticals Holding Corp. (TNXP)

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The shares of BHP Billiton Limited (NYSE:BHP) and Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) were among the active stocks of the last trading sessions. BHP Billiton Limited (NYSE:BHP) declined to -2.89% closing at the price of $46.41 whereas the shares of Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) soared 18.53% with the increase of 0.11 points closing at the price of $0.71. BHP Billiton Limited has currently decrease -2.7% in its stock over the period of 6-months while its rival Tonix Pharmaceuticals Holding Corp. subtracted -77.79% 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 BHP Billiton Limited (NYSE:BHP) is 13.7% while the ROI of Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BHP’s EBITDA Margin is 6.36 whereas TNXP’s is 0.45.

Both the profitability ratios suggest that BHP Billiton Limited (NYSE:BHP) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor
Technical Analysis of BHP Billiton Limited & Tonix Pharmaceuticals Holding Corp.

Moving average convergence divergence (MACD) shows that BHP Billiton Limited (NYSE:BHP) is on a PRICE RELATIVITY trend While Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the BHP Billiton Limited was in BEARISH territory and Tonix Pharmaceuticals Holding Corp. was in BULLISH territory.

BHP’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While TNXP’s candle is BULLISH with MEDIUM.

EPS Growth Rate: BHP’s 5.3% versus TNXP’s 0%

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 BHP Billiton Limited (NYSE:BHP) is predicted at 5.3% while Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) stands at 0%. These numbers suggest that BHP 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 BHP stands at 2.5 while TNXP is at 7.2 whereas the debt ratio of the prior is 0.48 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.

Analyst Recommendations

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 2.5 for BHP and 2.6 for TNXP which means BHP has Hold rating whereas TNXP 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 BHP is $47.03 which is 1.32% of its current price while TNXP has price target of 1.88 which is 62.23% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

BHP currently has price to earning P/E ratio of 13.85 whereas TNXP has 0 while the forward P/E ratio for the prior stands at 17.95 and for the later it depicts the value of 0.

The price to Book P/B for BHP is 2.22, Price to Sale is at 2.83 and for TNXP these ratios stand at 0.38 and 0.