The shares of Clovis Oncology, Inc. (NASDAQ:CLVS) and Banco Bilbao Viscaya Argentaria S.A. (NYSE:BBVA) were among the active stocks of the last trading sessions. Clovis Oncology, Inc. (NASDAQ:CLVS) soared to 5.68% closing at the price of $14.51 whereas the shares of Banco Bilbao Viscaya Argentaria S.A. (NYSE:BBVA) soared 2.43% with the increase of 0.14 points closing at the price of $5.89. Clovis Oncology, Inc. has currently decrease -66.36% in its stock over the period of 6-months while its rival Banco Bilbao Viscaya Argentaria S.A. subtracted -26.74% 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 Clovis Oncology, Inc. (NASDAQ:CLVS) is -27.3% while the ROI of Banco Bilbao Viscaya Argentaria S.A. (NYSE:BBVA) is 10.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CLVS’s EBITDA Margin is -3.54 whereas BBVA’s is NOT AVAILABLE.
Both the profitability ratios suggest that Banco Bilbao Viscaya Argentaria S.A. (NYSE:BBVA) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Technical Analysis of Clovis Oncology, Inc. & Banco Bilbao Viscaya Argentaria S.A.
Moving average convergence divergence (MACD) shows that Clovis Oncology, Inc. (NASDAQ:CLVS) is on a PRICE RELATIVITY trend While Banco Bilbao Viscaya Argentaria S.A. (NYSE:BBVA) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Clovis Oncology, Inc. was in BEARISH territory and Banco Bilbao Viscaya Argentaria S.A. was in BEARISH territory.
CLVS’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While BBVA’s candle is BULLISH with HIGH.
EPS Growth Rate: CLVS’s 29.4% versus BBVA’s 8.3%
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 Clovis Oncology, Inc. (NASDAQ:CLVS) is predicted at 29.4% while Banco Bilbao Viscaya Argentaria S.A. (NYSE:BBVA) stands at 8.3%. These numbers suggest that CLVS 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 CLVS stands at 9 while BBVA is at 0 whereas the debt ratio of the prior is 2.46 while the debt ratio of the later is 1.36.
The values of the both ratios suggest that CLVS 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 2.3 for CLVS and 4 for BBVA which means CLVS has Hold rating whereas BBVA has Sell 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 CLVS is $23.7 which is 38.78% of its current price while BBVA has price target of 7.58 which is 22.3% 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.
CLVS currently has price to earning P/E ratio of 0 whereas BBVA has 10.65 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 8.06.
The price to Book P/B for CLVS is 3.27, Price to Sale is at 9.31 and for BBVA these ratios stand at 0.82 and 1.41.