The shares of Allegheny Technologies Incorporated (NYSE:ATI) and Workday, Inc. (NASDAQ:WDAY) were among the active stocks of the last trading sessions. Allegheny Technologies Incorporated (NYSE:ATI) declined to -3.19% closing at the price of $27.02 whereas the shares of Workday, Inc. (NASDAQ:WDAY) declined -4.97% with the decrease of -6.82 points closing at the price of $130.43. Allegheny Technologies Incorporated has currently increase 4.16% in its stock over the period of 6-months while its rival Workday, Inc. subtracted -0.08% 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 Allegheny Technologies Incorporated (NYSE:ATI) is 1.4% while the ROI of Workday, Inc. (NASDAQ:WDAY) is -10.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ATI’s EBITDA Margin is 11.75 whereas WDAY’s is -165.46.
Both the profitability ratios suggest that Allegheny Technologies Incorporated (NYSE:ATI) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Allegheny Technologies Incorporated (NYSE:ATI) reported $0.52/share EPS for the previous quarter where analysts were predicting an EPS to be $0.36/share Thus beating the analyst Estimates with a Surprise Factor of 44.4 Percent. While, Workday, Inc. (NASDAQ:WDAY) reported EPS of $0.31/share in the last quarter. The analysts projected EPS of $0.26/share depicting a Surprise of 19.2 Percent.
Taking a look at Earnings per Share, Allegheny Technologies Incorporated tends to be beating the analyst estimates more than Workday, Inc.. so ATI is more profitable than WDAY.
Technical Analysis of Allegheny Technologies Incorporated & Workday, Inc.
Moving average convergence divergence (MACD) shows that Allegheny Technologies Incorporated (NYSE:ATI) is on a PRICE RELATIVITY trend While Workday, Inc. (NASDAQ:WDAY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Allegheny Technologies Incorporated was in BEARISH territory and Workday, Inc. was in BEARISH territory.
ATI’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While WDAY’s candle is BEARISH with HIGH.
EPS Growth Rate: ATI’s 0% versus WDAY’s 34.9%
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 Allegheny Technologies Incorporated (NYSE:ATI) is predicted at 0% while Workday, Inc. (NASDAQ:WDAY) stands at 34.9%. These numbers suggest that WDAY 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 ATI stands at 2.9 while WDAY is at 1.9 whereas the debt ratio of the prior is 0.81 while the debt ratio of the later is 0.66.
The values of the both ratios suggest that ATI 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 ATI and 2.4 for WDAY which means ATI has Hold rating whereas WDAY 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 ATI is $34.89 which is 22.56% of its current price while WDAY has price target of 154.09 which is 15.35% 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.
ATI currently has price to earning P/E ratio of 0 whereas WDAY has 0 while the forward P/E ratio for the prior stands at 12.14 and for the later it depicts the value of 87.36.
The price to Book P/B for ATI is 1.76, Price to Sale is at 0.9 and for WDAY these ratios stand at 15.87 and 11.33.