The shares of Cloudera, Inc. (NYSE:CLDR) and Credit Suisse Group (NYSE:CS) were among the active stocks of the last trading sessions. Cloudera, Inc. (NYSE:CLDR) declined to -3.71% closing at the price of $14 whereas the shares of Credit Suisse Group (NYSE:CS) soared 0.24% with the increase of 0.03 points closing at the price of $12.79. Cloudera, Inc. has currently decrease -11.78% in its stock over the period of 6-months while its rival Credit Suisse Group subtracted -23.69% 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 Cloudera, Inc. (NYSE:CLDR) is -80.5% while the ROI of Credit Suisse Group (NYSE:CS) is 2.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CLDR’s EBITDA Margin is -10.12 whereas CS’s is NOT AVAILABLE.
Both the profitability ratios suggest that Credit Suisse Group (NYSE:CS) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Technical Analysis of Cloudera, Inc. & Credit Suisse Group
Moving average convergence divergence (MACD) shows that Cloudera, Inc. (NYSE:CLDR) is on a PRICE RELATIVITY trend While Credit Suisse Group (NYSE:CS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Cloudera, Inc. was in BULLISH territory and Credit Suisse Group was in BULLISH territory.
CLDR’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While CS’s candle is NEUTRAL with MEDIUM.
EPS Growth Rate: CLDR’s 21.9% versus CS’s 58.1%
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 Cloudera, Inc. (NYSE:CLDR) is predicted at 21.9% while Credit Suisse Group (NYSE:CS) stands at 58.1%. These numbers suggest that CS 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 CLDR stands at 1.6 while CS is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 3.84.
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 2.1 for CLDR and 1 for CS which means CLDR has Hold rating whereas CS has Strong Buy 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 CLDR is $21.53 which is 34.97% of its current price while CS has price target of 21.35 which is 40.09% 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.
CLDR currently has price to earning P/E ratio of 0 whereas CS has 17.38 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 8.18.
The price to Book P/B for CLDR is 7.18, Price to Sale is at 5.12 and for CS these ratios stand at 0.77 and 1.8.