The shares of Exelixis, Inc. (NASDAQ:EXEL) and Itau Unibanco Banco Holding SA (NYSE:ITUB) were among the active stocks of the last trading sessions. Exelixis, Inc. (NASDAQ:EXEL) soared to 16.45% closing at the price of $17.41 whereas the shares of Itau Unibanco Banco Holding SA (NYSE:ITUB) soared 1.04% with the increase of 0.14 points closing at the price of $13.66. Exelixis, Inc. has currently decrease -21.61% in its stock over the period of 6-months while its rival Itau Unibanco Banco Holding SA added 4.42% 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 Exelixis, Inc. (NASDAQ:EXEL) is 55.4% while the ROI of Itau Unibanco Banco Holding SA (NYSE:ITUB) is 6.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, EXEL’s EBITDA Margin is NOT AVAILABLE whereas ITUB’s is NOT AVAILABLE.
Both the profitability ratios suggest a mixed sentiment for Exelixis, Inc. (NASDAQ:EXEL) and Itau Unibanco Banco Holding SA (NYSE:ITUB).
EPS & Surprise Factor
Exelixis, Inc. (NASDAQ:EXEL) reported $0.41/share EPS for the previous quarter where analysts were predicting an EPS to be $0.19/share Thus beating the analyst Estimates with a Surprise Factor of 115.8 Percent. While, Itau Unibanco Banco Holding SA (NYSE:ITUB) reported EPS of $0.25/share in the last quarter. The analysts projected EPS of $0.26/share depicting a Surprise of -3.8 Percent.
Taking a look at Earnings per Share, Exelixis, Inc. tends to be beating the analyst estimates more than Itau Unibanco Banco Holding SA. so EXEL is more profitable than ITUB.
Technical Analysis of Exelixis, Inc. & Itau Unibanco Banco Holding SA
Moving average convergence divergence (MACD) shows that Exelixis, Inc. (NASDAQ:EXEL) is on a PRICE RELATIVITY trend While Itau Unibanco Banco Holding SA (NYSE:ITUB) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Exelixis, Inc. was in BULLISH territory and Itau Unibanco Banco Holding SA was in BULLISH territory.
EXEL’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While ITUB’s candle is BULLISH with MEDIUM.
EPS Growth Rate: EXEL’s 46% versus ITUB’s 11.8%
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 Exelixis, Inc. (NASDAQ:EXEL) is predicted at 46% while Itau Unibanco Banco Holding SA (NYSE:ITUB) stands at 11.8%. These numbers suggest that EXEL 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 EXEL stands at 8.7 while ITUB is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 4.21.
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 2.1 for EXEL and 2.7 for ITUB which means EXEL has Hold rating whereas ITUB 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 EXEL is $29.22 which is 40.42% of its current price while ITUB has price target of 13.5 which is -1.19% 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.
EXEL currently has price to earning P/E ratio of 16.87 whereas ITUB has 13.9 while the forward P/E ratio for the prior stands at 14.32 and for the later it depicts the value of 11.4.
The price to Book P/B for EXEL is 5.67, Price to Sale is at 7.74 and for ITUB these ratios stand at 2.52 and 2.31.