The shares of AMTEK, Inc. (NYSE:AME) and SunPower Corporation (NASDAQ:SPWR) were among the active stocks of the last trading sessions. AMTEK, Inc. (NYSE:AME) soared to 1.54% closing at the price of $74.64 whereas the shares of SunPower Corporation (NASDAQ:SPWR) declined -2.83% with the decrease of -0.18 points closing at the price of $6.18. AMTEK, Inc. has currently decrease -0.21% in its stock over the period of 6-months while its rival SunPower Corporation subtracted -31.41% 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 AMTEK, Inc. (NYSE:AME) is 11.4% while the ROI of SunPower Corporation (NASDAQ:SPWR) is -26.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AME’s EBITDA Margin is 14.37 whereas SPWR’s is -50.12.
Both the profitability ratios suggest that AMTEK, Inc. (NYSE:AME) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
AMTEK, Inc. (NYSE:AME) reported $0.83/share EPS for the previous quarter where analysts were predicting an EPS to be $0.78/share Thus beating the analyst Estimates with a Surprise Factor of 6.4 Percent. While, SunPower Corporation (NASDAQ:SPWR) reported EPS of $-0.29/share in the last quarter. The analysts projected EPS of $-0.4/share depicting a Surprise of 27.5 Percent.
Taking a look at Earnings per Share, SunPower Corporation tends to be beating the analyst estimates more than AMTEK, Inc.. so SPWR is more profitable than AME.
Technical Analysis of AMTEK, Inc. & SunPower Corporation
Moving average convergence divergence (MACD) shows that AMTEK, Inc. (NYSE:AME) is on a PRICE RELATIVITY trend While SunPower Corporation (NASDAQ:SPWR) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the AMTEK, Inc. was in BULLISH territory and SunPower Corporation was in BEARISH territory.
AME’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While SPWR’s candle is BEARISH with HIGH.
EPS Growth Rate: AME’s 9.63% versus SPWR’s 0%
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 AMTEK, Inc. (NYSE:AME) is predicted at 9.63% while SunPower Corporation (NASDAQ:SPWR) stands at 0%. These numbers suggest that AME 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 AME stands at 1.7 while SPWR is at 1.7 whereas the debt ratio of the prior is 0.49 while the debt ratio of the later is 0.
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 1.7 for AME and 2.8 for SPWR which means AME has Buy rating whereas SPWR 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 AME is $86.64 which is 13.85% of its current price while SPWR has price target of 8.46 which is 26.95% 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.
AME currently has price to earning P/E ratio of 24.38 whereas SPWR has 0 while the forward P/E ratio for the prior stands at 20.88 and for the later it depicts the value of 0.
The price to Book P/B for AME is 3.98, Price to Sale is at 3.62 and for SPWR these ratios stand at 0 and 0.46.