Which stock Worth more Value? Akorn, Inc. (AKRX) or Akoustis Technologies, Inc. (AKTS)

The shares of Akorn, Inc. (NASDAQ:AKRX) and Akoustis Technologies, Inc. (NASDAQ:AKTS) were among the active stocks of the last trading sessions. Akorn, Inc. (NASDAQ:AKRX) soared to 1.35% closing at the price of $7.49 whereas the shares of Akoustis Technologies, Inc. (NASDAQ:AKTS) soared 18.67% with the increase of 0.7 points closing at the price of $4.45. Akorn, Inc. has currently decrease -41.53% in its stock over the period of 6-months while its rival Akoustis Technologies, Inc. subtracted -24.96% 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 Akorn, Inc. (NASDAQ:AKRX) is -0.6% while the ROI of Akoustis Technologies, Inc. (NASDAQ:AKTS) is -88.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AKRX’s EBITDA Margin is 20.95 whereas AKTS’s is -4.11.

Both the profitability ratios suggest that Akorn, Inc. (NASDAQ:AKRX) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Akorn, Inc. (NASDAQ:AKRX) reported $0.16/share EPS for the previous quarter where analysts were predicting an EPS to be $0.11/share Thus beating the analyst Estimates with a Surprise Factor of 45.5 Percent. While, Akoustis Technologies, Inc. (NASDAQ:AKTS) reported EPS of $-0.3/share in the last quarter. The analysts projected EPS of $-0.22/share depicting a Surprise of -36.4 Percent.

Taking a look at Earnings per Share, Akorn, Inc. tends to be beating the analyst estimates more than Akoustis Technologies, Inc.. so AKRX is more profitable than AKTS.

Technical Analysis of Akorn, Inc. & Akoustis Technologies, Inc.

Moving average convergence divergence (MACD) shows that Akorn, Inc. (NASDAQ:AKRX) is on a PRICE RELATIVITY trend While Akoustis Technologies, Inc. (NASDAQ:AKTS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Akorn, Inc. was in BULLISH territory and Akoustis Technologies, Inc. was in BEARISH territory.

AKRX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While AKTS’s candle is BEARISH with MEDIUM.

EPS Growth Rate: AKRX’s 15% versus AKTS’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 Akorn, Inc. (NASDAQ:AKRX) is predicted at 15% while Akoustis Technologies, Inc. (NASDAQ:AKTS) stands at 0%. These numbers suggest that AKRX 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 AKRX stands at 3.9 while AKTS is at 6 whereas the debt ratio of the prior is 1.13 while the debt ratio of the later is 0.83.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

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 2.7 for AKRX and 1.8 for AKTS which means AKRX has Hold rating whereas AKTS has 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 AKRX is $9 which is 16.78% of its current price while AKTS has price target of 10.7 which is 58.41% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

AKRX currently has price to earning P/E ratio of 0 whereas AKTS has 0 while the forward P/E ratio for the prior stands at 14.74 and for the later it depicts the value of 0.

The price to Book P/B for AKRX is 1.3, Price to Sale is at 1.22 and for AKTS these ratios stand at 7.18 and 118.3.