The shares of International Game Technology (NYSE:IGT) and MannKind Corporation (NASDAQ:MNKD) were among the active stocks of the last trading sessions. International Game Technology (NYSE:IGT) declined to -3.16% closing at the price of $18.09 whereas the shares of MannKind Corporation (NASDAQ:MNKD) declined -4.69% with the decrease of -0.09 points closing at the price of $1.83. International Game Technology has currently decrease -35.96% in its stock over the period of 6-months while its rival MannKind Corporation added 3.98% 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 International Game Technology (NYSE:IGT) is -1.5% while the ROI of MannKind Corporation (NASDAQ:MNKD) is 189.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, IGT’s EBITDA Margin is 7.8 whereas MNKD’s is -3.83.
Both the profitability ratios suggest a mixed sentiment for International Game Technology (NYSE:IGT) and MannKind Corporation (NASDAQ:MNKD).
EPS & Surprise Factor
International Game Technology (NYSE:IGT) reported $0.31/share EPS for the previous quarter where analysts were predicting an EPS to be $0.29/share Thus beating the analyst Estimates with a Surprise Factor of 6.9 Percent. While, MannKind Corporation (NASDAQ:MNKD) reported EPS of $-0.16/share in the last quarter. The analysts projected EPS of $-0.18/share depicting a Surprise of 11.1 Percent.
Taking a look at Earnings per Share, MannKind Corporation tends to be beating the analyst estimates more than International Game Technology. so MNKD is more profitable than IGT.
Technical Analysis of International Game Technology & MannKind Corporation
Moving average convergence divergence (MACD) shows that International Game Technology (NYSE:IGT) is on a PRICE RELATIVITY trend While MannKind Corporation (NASDAQ:MNKD) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the International Game Technology was in BULLISH territory and MannKind Corporation was in BULLISH territory.
IGT’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While MNKD’s candle is BEARISH with MEDIUM.
EPS Growth Rate: IGT’s 27.76% versus MNKD’s 26.8%
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 International Game Technology (NYSE:IGT) is predicted at 27.76% while MannKind Corporation (NASDAQ:MNKD) stands at 26.8%. These numbers suggest that IGT 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 IGT stands at 1 while MNKD is at 0.5 whereas the debt ratio of the prior is 4.14 while the debt ratio of the later is 0.
The values of the both ratios suggest that IGT 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 1.9 for IGT and 2 for MNKD which means IGT has Buy rating whereas MNKD 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 IGT is $25.19 which is 28.19% of its current price while MNKD has price target of 4 which is 54.25% 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.
IGT currently has price to earning P/E ratio of 75.69 whereas MNKD has 0 while the forward P/E ratio for the prior stands at 10.72 and for the later it depicts the value of 0.
The price to Book P/B for IGT is 1.87, Price to Sale is at 0.78 and for MNKD these ratios stand at 0 and 21.13.