The shares of Fitbit, Inc. (NYSE:FIT) and Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) were among the active stocks of the last trading sessions. Fitbit, Inc. (NYSE:FIT) soared to 2.52% closing at the price of $6.1 whereas the shares of Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) declined -18.94% with the decrease of -2.28 points closing at the price of $9.76. Fitbit, Inc. has currently increase 22.49% in its stock over the period of 6-months while its rival Allscripts Healthcare Solutions, Inc. subtracted -16.94% 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 Fitbit, Inc. (NYSE:FIT) is -28.9% while the ROI of Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) is -4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, FIT’s EBITDA Margin is -4.25 whereas MDRX’s is 41.06.
Both the profitability ratios suggest that Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Fitbit, Inc. (NYSE:FIT) reported $0.04/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.01/share Thus beating the analyst Estimates with a Surprise Factor of 500 Percent. While, Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) reported EPS of $0.18/share in the last quarter. The analysts projected EPS of $0.2/share depicting a Surprise of -10 Percent.
Taking a look at Earnings per Share, Fitbit, Inc. tends to be beating the analyst estimates more than Allscripts Healthcare Solutions, Inc.. so FIT is more profitable than MDRX.
Technical Analysis of Fitbit, Inc. & Allscripts Healthcare Solutions, Inc.
Moving average convergence divergence (MACD) shows that Fitbit, Inc. (NYSE:FIT) is on a PRICE RELATIVITY trend While Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Fitbit, Inc. was in BULLISH territory and Allscripts Healthcare Solutions, Inc. was in BEARISH territory.
FIT’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While MDRX’s candle is BEARISH with HIGH.
EPS Growth Rate: FIT’s 10.5% versus MDRX’s 17%
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 Fitbit, Inc. (NYSE:FIT) is predicted at 10.5% while Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) stands at 17%. These numbers suggest that MDRX 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 FIT stands at 1.9 while MDRX is at 0.9 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 1.48.
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 2.8 for FIT and 2.1 for MDRX which means FIT has Hold rating whereas MDRX 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 FIT is $6.5 which is 6.15% of its current price while MDRX has price target of 15.06 which is 35.19% 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.
FIT currently has price to earning P/E ratio of 0 whereas MDRX has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 11.66.
The price to Book P/B for FIT is 2.18, Price to Sale is at 0.97 and for MDRX these ratios stand at 1.55 and 1.05.