The shares of Teradyne, Inc. (NYSE:TER) and Endo International plc (NASDAQ:ENDP) were among the active stocks of the last trading sessions. Teradyne, Inc. (NYSE:TER) soared to 5.05% closing at the price of $36.19 whereas the shares of Endo International plc (NASDAQ:ENDP) soared 0.83% with the increase of 0.14 points closing at the price of $17.08. Teradyne, Inc. has currently increase 1.37% in its stock over the period of 6-months while its rival Endo International plc added 205% 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 Teradyne, Inc. (NYSE:TER) is 19.3% while the ROI of Endo International plc (NASDAQ:ENDP) is -9.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TER’s EBITDA Margin is 9.28 whereas ENDP’s is 49.57.
Both the profitability ratios suggest a mixed sentiment for Teradyne, Inc. (NYSE:TER) and Endo International plc (NASDAQ:ENDP).
EPS & Surprise Factor
Teradyne, Inc. (NYSE:TER) reported $0.71/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 12.7 Percent. While, Endo International plc (NASDAQ:ENDP) reported EPS of $0.76/share in the last quarter. The analysts projected EPS of $0.54/share depicting a Surprise of 40.7 Percent.
Taking a look at Earnings per Share, Endo International plc tends to be beating the analyst estimates more than Teradyne, Inc.. so ENDP is more profitable than TER.
Technical Analysis of Teradyne, Inc. & Endo International plc
Moving average convergence divergence (MACD) shows that Teradyne, Inc. (NYSE:TER) is on a PRICE RELATIVITY trend While Endo International plc (NASDAQ:ENDP) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Teradyne, Inc. was in BULLISH territory and Endo International plc was in BEARISH territory.
TER’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While ENDP’s candle is BEARISH with MEDIUM.
EPS Growth Rate: TER’s 11.11% versus ENDP’s -2.73%
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 Teradyne, Inc. (NYSE:TER) is predicted at 11.11% while Endo International plc (NASDAQ:ENDP) stands at -2.73%. These numbers suggest that TER 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 TER stands at 4.2 while ENDP is at 1.1 whereas the debt ratio of the prior is 0.21 while the debt ratio of the later is 0.
The values of the both ratios suggest that TER 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 2.2 for TER and 2.6 for ENDP which means TER has Hold rating whereas ENDP 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 TER is $39.47 which is 8.31% of its current price while ENDP has price target of 17.27 which is 1.1% 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.
TER currently has price to earning P/E ratio of 18.24 whereas ENDP has 0 while the forward P/E ratio for the prior stands at 14.76 and for the later it depicts the value of 6.34.
The price to Book P/B for TER is 3.97, Price to Sale is at 3.32 and for ENDP these ratios stand at 0 and 1.31.