The shares of Avon Products, Inc. (NYSE:AVP) and Progenics Pharmaceuticals Inc. (NASDAQ:PGNX) were among the active stocks of the last trading sessions. Avon Products, Inc. (NYSE:AVP) declined to -3.47% closing at the price of $1.95 whereas the shares of Progenics Pharmaceuticals Inc. (NASDAQ:PGNX) soared 5.48% with the increase of 0.3 points closing at the price of $5.77. Avon Products, Inc. has currently decrease -29.35% in its stock over the period of 6-months while its rival Progenics Pharmaceuticals Inc. subtracted -17.57% 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 Avon Products, Inc. (NYSE:AVP) is 12.6% while the ROI of Progenics Pharmaceuticals Inc. (NASDAQ:PGNX) is -44.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AVP’s EBITDA Margin is 5.68 whereas PGNX’s is -7.29.
Both the profitability ratios suggest that Avon Products, Inc. (NYSE:AVP) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Technical Analysis of Avon Products, Inc. & Progenics Pharmaceuticals Inc.
Moving average convergence divergence (MACD) shows that Avon Products, Inc. (NYSE:AVP) is on a PRICE RELATIVITY trend While Progenics Pharmaceuticals Inc. (NASDAQ:PGNX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Avon Products, Inc. was in BEARISH territory and Progenics Pharmaceuticals Inc. was in BEARISH territory.
AVP’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While PGNX’s candle is BULLISH with MEDIUM.
EPS Growth Rate: AVP’s 5% versus PGNX’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 Avon Products, Inc. (NYSE:AVP) is predicted at 5% while Progenics Pharmaceuticals Inc. (NASDAQ:PGNX) stands at 0%. These numbers suggest that AVP 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 AVP stands at 1.3 while PGNX is at 6.3 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.76.
The values of the both ratios suggest that PGNX 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 2.5 for AVP and 1.5 for PGNX which means AVP has Hold rating whereas PGNX 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 AVP is $2.46 which is 20.73% of its current price while PGNX has price target of 12.5 which is 53.84% 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.
AVP currently has price to earning P/E ratio of 65 whereas PGNX has 0 while the forward P/E ratio for the prior stands at 11.54 and for the later it depicts the value of 0.
The price to Book P/B for AVP is 0, Price to Sale is at 0.15 and for PGNX these ratios stand at 6.79 and 35.51.