The shares of Akers Biosciences Inc (NASDAQ:AKER) and Geron Corporation (NASDAQ:GERN) were among the active stocks of the last trading sessions. Akers Biosciences Inc (NASDAQ:AKER) soared to 14% closing at the price of $0.4 whereas the shares of Geron Corporation (NASDAQ:GERN) declined -6.78% with the decrease of -0.12 points closing at the price of $1.65. Akers Biosciences Inc has currently decrease -17.05% in its stock over the period of 6-months while its rival Geron Corporation subtracted -57.14% 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 Akers Biosciences Inc (NASDAQ:AKER) is -114% while the ROI of Geron Corporation (NASDAQ:GERN) is -28.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AKER’s EBITDA Margin is -3.36 whereas GERN’s is -4.73.
Both the profitability ratios suggest a mixed sentiment for Akers Biosciences Inc (NASDAQ:AKER) and Geron Corporation (NASDAQ:GERN).
EPS & Surprise Factor
Akers Biosciences Inc (NASDAQ:AKER) reported $-0.2/share EPS for the previous quarter where analysts were predicting an EPS to be $0.06/share Thus lagging the analyst Estimates with a Surprise Factor of -433.3 Percent. While, Geron Corporation (NASDAQ:GERN) reported EPS of $-0.03/share in the last quarter. The analysts projected EPS of $-0.05/share depicting a Surprise of 40 Percent.
Taking a look at Earnings per Share, Geron Corporation tends to be beating the analyst estimates more than Akers Biosciences Inc. so GERN is more profitable than AKER.
Technical Analysis of Akers Biosciences Inc & Geron Corporation
Moving average convergence divergence (MACD) shows that Akers Biosciences Inc (NASDAQ:AKER) is on a PRICE RELATIVITY trend While Geron Corporation (NASDAQ:GERN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Akers Biosciences Inc was in BEARISH territory and Geron Corporation was in BULLISH territory.
AKER’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While GERN’s candle is BEARISH with HIGH.
EPS Growth Rate: AKER’s 0% versus GERN’s 5%
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 Akers Biosciences Inc (NASDAQ:AKER) is predicted at 0% while Geron Corporation (NASDAQ:GERN) stands at 5%. These numbers suggest that GERN 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 AKER stands at 5.7 while GERN is at 37.8 whereas the debt ratio of the prior is 0 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 2 for AKER and 3 for GERN which means AKER has Buy rating whereas GERN 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 AKER is $4 which is 90% of its current price while GERN has price target of 1.5 which is -10% 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.
AKER currently has price to earning P/E ratio of 0 whereas GERN has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 0.
The price to Book P/B for AKER is 3.29, Price to Sale is at 15.49 and for GERN these ratios stand at 1.65 and 372.92.