The shares of Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) and Bilibili Inc. (NASDAQ:BILI) were among the active stocks of the last trading sessions. Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) declined to -2.98% closing at the price of $49.89 whereas the shares of Bilibili Inc. (NASDAQ:BILI) declined -4.83% with the decrease of -0.64 points closing at the price of $12.61. Norwegian Cruise Line Holdings Ltd. has currently decrease -10.35% in its stock over the period of 6-months while its rival Bilibili Inc. added 12.69% 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 Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) is 8.5% while the ROI of Bilibili Inc. (NASDAQ:BILI) is 12%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NCLH’s EBITDA Margin is 10.64 whereas BILI’s is 197.59.
Both the profitability ratios suggest that Bilibili Inc. (NASDAQ:BILI) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) reported $1.21/share EPS for the previous quarter where analysts were predicting an EPS to be $1.02/share Thus beating the analyst Estimates with a Surprise Factor of 18.6 Percent. While, Bilibili Inc. (NASDAQ:BILI) reported EPS of $-0.01/share in the last quarter. The analysts projected EPS of $-0.03/share depicting a Surprise of 66.7 Percent.
Taking a look at Earnings per Share, Bilibili Inc. tends to be beating the analyst estimates more than Norwegian Cruise Line Holdings Ltd.. so BILI is more profitable than NCLH.
Technical Analysis of Norwegian Cruise Line Holdings Ltd. & Bilibili Inc.
Moving average convergence divergence (MACD) shows that Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) is on a PRICE RELATIVITY trend While Bilibili Inc. (NASDAQ:BILI) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Norwegian Cruise Line Holdings Ltd. was in BEARISH territory and Bilibili Inc. was in territory.
NCLH’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While BILI’s candle is with .
EPS Growth Rate: NCLH’s 13.15% versus BILI’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 Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) is predicted at 13.15% while Bilibili Inc. (NASDAQ:BILI) stands at 0%. These numbers suggest that NCLH 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 NCLH stands at 0.2 while BILI is at 2.4 whereas the debt ratio of the prior is 1.2 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.
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 1.8 for NCLH and 1.8 for BILI which means NCLH has Buy rating whereas BILI 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 NCLH is $65.65 which is 24.01% of its current price while BILI has price target of 14.17 which is 11.01% 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.
NCLH currently has price to earning P/E ratio of 13.86 whereas BILI has 0 while the forward P/E ratio for the prior stands at 9.64 and for the later it depicts the value of 122.43.
The price to Book P/B for NCLH is 1.96, Price to Sale is at 1.93 and for BILI these ratios stand at 4.79 and 6.67.