The shares of 3D Systems Corporation (NYSE:DDD) and Fiserv, Inc. (NASDAQ:FISV) were among the active stocks of the last trading sessions. 3D Systems Corporation (NYSE:DDD) declined to -2.58% closing at the price of $12.85 whereas the shares of Fiserv, Inc. (NASDAQ:FISV) soared 1.04% with the increase of 0.8 points closing at the price of $77.51. 3D Systems Corporation has currently increase 6.91% in its stock over the period of 6-months while its rival Fiserv, Inc. added 8.42% 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 3D Systems Corporation (NYSE:DDD) is -9.9% while the ROI of Fiserv, Inc. (NASDAQ:FISV) is 14.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DDD’s EBITDA Margin is -898.87 whereas FISV’s is 19.79.
Both the profitability ratios suggest that Fiserv, Inc. (NASDAQ:FISV) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
3D Systems Corporation (NYSE:DDD) reported $0.02/share EPS for the previous quarter where analysts were predicting an EPS to be $0.03/share Thus lagging the analyst Estimates with a Surprise Factor of -33.3 Percent. While, Fiserv, Inc. (NASDAQ:FISV) reported EPS of $0.75/share in the last quarter. The analysts projected EPS of $0.77/share depicting a Surprise of -2.6 Percent.
Taking a look at Earnings per Share, Fiserv, Inc. tends to be beating the analyst estimates more than 3D Systems Corporation. so FISV is more profitable than DDD.
Technical Analysis of 3D Systems Corporation & Fiserv, Inc.
Moving average convergence divergence (MACD) shows that 3D Systems Corporation (NYSE:DDD) is on a PRICE RELATIVITY trend While Fiserv, Inc. (NASDAQ:FISV) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the 3D Systems Corporation was in BEARISH territory and Fiserv, Inc. was in BEARISH territory.
DDD’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While FISV’s candle is BULLISH with HIGH.
EPS Growth Rate: DDD’s 10% versus FISV’s 13.25%
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 3D Systems Corporation (NYSE:DDD) is predicted at 10% while Fiserv, Inc. (NASDAQ:FISV) stands at 13.25%. These numbers suggest that FISV 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 DDD stands at 2.3 while FISV is at 1 whereas the debt ratio of the prior is 0.01 while the debt ratio of the later is 1.98.
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 3.4 for DDD and 2.5 for FISV which means DDD has Sell rating whereas FISV 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 DDD is $12.43 which is -3.38% of its current price while FISV has price target of 80.8 which is 4.07% 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.
DDD currently has price to earning P/E ratio of 0 whereas FISV has 27.6 while the forward P/E ratio for the prior stands at 52.45 and for the later it depicts the value of 22.08.
The price to Book P/B for DDD is 2.49, Price to Sale is at 2.11 and for FISV these ratios stand at 11.76 and 5.42.