The shares of AGNC Investment Corp. (NASDAQ:AGNC) and Histogenics Corporation (NASDAQ:HSGX) were among the active stocks of the last trading sessions. AGNC Investment Corp. (NASDAQ:AGNC) declined to -0.95% closing at the price of $17.67 whereas the shares of Histogenics Corporation (NASDAQ:HSGX) declined -17.55% with the decrease of -0.12 points closing at the price of $0.55. AGNC Investment Corp. has currently decrease -7.68% in its stock over the period of 6-months while its rival Histogenics Corporation subtracted -79.42% 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 AGNC Investment Corp. (NASDAQ:AGNC) is 0% while the ROI of Histogenics Corporation (NASDAQ:HSGX) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AGNC’s EBITDA Margin is NOT AVAILABLE whereas HSGX’s is -0.5.
Both the profitability ratios suggest a mixed sentiment for AGNC Investment Corp. (NASDAQ:AGNC) and Histogenics Corporation (NASDAQ:HSGX).
EPS & Surprise Factor
AGNC Investment Corp. (NASDAQ:AGNC) reported $0.61/share EPS for the previous quarter where analysts were predicting an EPS to be $0.59/share Thus beating the analyst Estimates with a Surprise Factor of 3.4 Percent. While, Histogenics Corporation (NASDAQ:HSGX) reported EPS of $-0.13/share in the last quarter. The analysts projected EPS of $-0.23/share depicting a Surprise of 43.5 Percent.
Taking a look at Earnings per Share, Histogenics Corporation tends to be beating the analyst estimates more than AGNC Investment Corp.. so HSGX is more profitable than AGNC.
Technical Analysis of AGNC Investment Corp. & Histogenics Corporation
Moving average convergence divergence (MACD) shows that AGNC Investment Corp. (NASDAQ:AGNC) is on a PRICE RELATIVITY trend While Histogenics Corporation (NASDAQ:HSGX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the AGNC Investment Corp. was in BULLISH territory and Histogenics Corporation was in BEARISH territory.
AGNC’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While HSGX’s candle is BULLISH with HIGH.
EPS Growth Rate: AGNC’s 1.41% versus HSGX’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 AGNC Investment Corp. (NASDAQ:AGNC) is predicted at 1.41% while Histogenics Corporation (NASDAQ:HSGX) stands at 0%. These numbers suggest that AGNC 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 AGNC stands at 0 while HSGX is at 0.8 whereas the debt ratio of the prior is 5.74 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 2.9 for AGNC and 2.2 for HSGX which means AGNC has Hold rating whereas HSGX 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 AGNC is $18.08 which is 2.27% of its current price while HSGX has price target of 3 which is 81.67% 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.
AGNC currently has price to earning P/E ratio of 5.58 whereas HSGX has 0 while the forward P/E ratio for the prior stands at 7.58 and for the later it depicts the value of 0.
The price to Book P/B for AGNC is 0.84, Price to Sale is at 3.63 and for HSGX these ratios stand at 0 and 0.