The shares of Agilent Technologies, Inc. (NYSE:A) and Spotify Technology S.A. (NYSE:SPOT) were among the active stocks of the last trading sessions. Agilent Technologies, Inc. (NYSE:A) declined to -2.16% closing at the price of $65.75 whereas the shares of Spotify Technology S.A. (NYSE:SPOT) declined -4.26% with the decrease of -6.79 points closing at the price of $152.49. Agilent Technologies, Inc. has currently decrease -2.66% in its stock over the period of 6-months while its rival Spotify Technology S.A. subtracted -3.76% 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 Agilent Technologies, Inc. (NYSE:A) is 10.6% while the ROI of Spotify Technology S.A. (NYSE:SPOT) is -32%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, A’s EBITDA Margin is 17.65 whereas SPOT’s is -87.42.
Both the profitability ratios suggest that Agilent Technologies, Inc. (NYSE:A) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Agilent Technologies, Inc. (NYSE:A) reported $0.67/share EPS for the previous quarter where analysts were predicting an EPS to be $0.63/share Thus beating the analyst Estimates with a Surprise Factor of 6.3 Percent. While, Spotify Technology S.A. (NYSE:SPOT) reported EPS of $-2.55/share in the last quarter. The analysts projected EPS of $-0.79/share depicting a Surprise of -222.8 Percent.
Taking a look at Earnings per Share, Agilent Technologies, Inc. tends to be beating the analyst estimates more than Spotify Technology S.A.. so A is more profitable than SPOT.
Technical Analysis of Agilent Technologies, Inc. & Spotify Technology S.A.
Moving average convergence divergence (MACD) shows that Agilent Technologies, Inc. (NYSE:A) is on a PRICE RELATIVITY trend While Spotify Technology S.A. (NYSE:SPOT) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Agilent Technologies, Inc. was in BEARISH territory and Spotify Technology S.A. was in territory.
A’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While SPOT’s candle is with .
EPS Growth Rate: A’s 10.84% versus SPOT’s 25%
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 Agilent Technologies, Inc. (NYSE:A) is predicted at 10.84% while Spotify Technology S.A. (NYSE:SPOT) stands at 25%. These numbers suggest that SPOT 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 A stands at 3.6 while SPOT is at 0.9 whereas the debt ratio of the prior is 0.39 while the debt ratio of the later is 0.
The values of the both ratios suggest that A 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 1.6 for A and 2.1 for SPOT which means A has Buy rating whereas SPOT 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 A is $79.23 which is 17.01% of its current price while SPOT has price target of 211.42 which is 27.87% 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.
A currently has price to earning P/E ratio of 25.73 whereas SPOT has 0 while the forward P/E ratio for the prior stands at 22.16 and for the later it depicts the value of 0.
The price to Book P/B for A is 4.61, Price to Sale is at 4.38 and for SPOT these ratios stand at 23.57 and 4.9.