The shares of Ballard Power Systems, Inc. (NASDAQ:BLDP) and Amgen Inc. (NASDAQ:AMGN) were among the active stocks of the last trading sessions. Ballard Power Systems, Inc. (NASDAQ:BLDP) declined to -8.36% closing at the price of $2.74 whereas the shares of Amgen Inc. (NASDAQ:AMGN) declined -3.03% with the decrease of -5.84 points closing at the price of $187.06. Ballard Power Systems, Inc. has currently decrease -9.57% in its stock over the period of 6-months while its rival Amgen Inc. added 11.31% 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 Ballard Power Systems, Inc. (NASDAQ:BLDP) is -6.3% while the ROI of Amgen Inc. (NASDAQ:AMGN) is 14%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BLDP’s EBITDA Margin is -89.02 whereas AMGN’s is 10.63.
Both the profitability ratios suggest that Amgen Inc. (NASDAQ:AMGN) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Ballard Power Systems, Inc. (NASDAQ:BLDP) reported $-0.03/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.02/share Thus lagging the analyst Estimates with a Surprise Factor of -50 Percent. While, Amgen Inc. (NASDAQ:AMGN) reported EPS of $3.69/share in the last quarter. The analysts projected EPS of $3.45/share depicting a Surprise of 7 Percent.
Taking a look at Earnings per Share, Amgen Inc. tends to be beating the analyst estimates more than Ballard Power Systems, Inc.. so AMGN is more profitable than BLDP.
Technical Analysis of Ballard Power Systems, Inc. & Amgen Inc.
Moving average convergence divergence (MACD) shows that Ballard Power Systems, Inc. (NASDAQ:BLDP) is on a PRICE RELATIVITY trend While Amgen Inc. (NASDAQ:AMGN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Ballard Power Systems, Inc. was in BEARISH territory and Amgen Inc. was in BEARISH territory.
BLDP’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While AMGN’s candle is BEARISH with HIGH.
EPS Growth Rate: BLDP’s 0.03% versus AMGN’s 4.65%
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 Ballard Power Systems, Inc. (NASDAQ:BLDP) is predicted at 0.03% while Amgen Inc. (NASDAQ:AMGN) stands at 4.65%. These numbers suggest that AMGN 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 BLDP stands at 2.5 while AMGN is at 3.1 whereas the debt ratio of the prior is 0.06 while the debt ratio of the later is 2.4.
The values of the both ratios suggest that AMGN 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 2.4 for BLDP and 2.3 for AMGN which means BLDP has Hold rating whereas AMGN 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 BLDP is $4.65 which is 41.08% of its current price while AMGN has price target of 204.45 which is 8.51% 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.
BLDP currently has price to earning P/E ratio of 0 whereas AMGN has 15.43 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 12.95.
The price to Book P/B for BLDP is 4.49, Price to Sale is at 4.95 and for AMGN these ratios stand at 8.41 and 5.35.