The shares of TOP Ships Inc. (NASDAQ:TOPS) and NXP Semiconductors N.V. (NASDAQ:NXPI) were among the active stocks of the last trading sessions. TOP Ships Inc. (NASDAQ:TOPS) soared to 5.85% closing at the price of $1.81 whereas the shares of NXP Semiconductors N.V. (NASDAQ:NXPI) soared 2.03% with the increase of 1.68 points closing at the price of $84.54. TOP Ships Inc. has currently increase 5.23% in its stock over the period of 6-months while its rival NXP Semiconductors N.V. subtracted -14.29% 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 TOP Ships Inc. (NASDAQ:TOPS) is 0.8% while the ROI of NXP Semiconductors N.V. (NASDAQ:NXPI) is 9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TOPS’s EBITDA Margin is 14.72 whereas NXPI’s is 7.9.
Both the profitability ratios suggest a mixed sentiment for TOP Ships Inc. (NASDAQ:TOPS) and NXP Semiconductors N.V. (NASDAQ:NXPI).
EPS & Surprise Factor
TOP Ships Inc. (NASDAQ:TOPS) reported $3780000/share EPS for the previous quarter where analysts were predicting an EPS to be $16380000/share Thus lagging the analyst Estimates with a Surprise Factor of -76.9 Percent. While, NXP Semiconductors N.V. (NASDAQ:NXPI) reported EPS of $2.01/share in the last quarter. The analysts projected EPS of $1.9/share depicting a Surprise of 5.8 Percent.
Taking a look at Earnings per Share, NXP Semiconductors N.V. tends to be beating the analyst estimates more than TOP Ships Inc.. so NXPI is more profitable than TOPS.
Technical Analysis of TOP Ships Inc. & NXP Semiconductors N.V.
Moving average convergence divergence (MACD) shows that TOP Ships Inc. (NASDAQ:TOPS) is on a PRICE RELATIVITY trend While NXP Semiconductors N.V. (NASDAQ:NXPI) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the TOP Ships Inc. was in BULLISH territory and NXP Semiconductors N.V. was in BULLISH territory.
TOPS’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While NXPI’s candle is BULLISH with HIGH.
EPS Growth Rate: TOPS’s 0% versus NXPI’s 13.78%
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 TOP Ships Inc. (NASDAQ:TOPS) is predicted at 0% while NXP Semiconductors N.V. (NASDAQ:NXPI) stands at 13.78%. These numbers suggest that NXPI 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 TOPS stands at 0.2 while NXPI is at 1.2 whereas the debt ratio of the prior is 1.07 while the debt ratio of the later is 0.6.
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 for TOPS and 2.3 for NXPI which means TOPS has Hold rating whereas NXPI 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 TOPS is $750 which is 99.76% of its current price while NXPI has price target of 101.94 which is 17.07% 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.
TOPS currently has price to earning P/E ratio of 0 whereas NXPI has 14.15 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 9.78.
The price to Book P/B for TOPS is 0.29, Price to Sale is at 0.89 and for NXPI these ratios stand at 2.56 and 3.09.