The shares of KLA-Tencor Corporation (NASDAQ:KLAC) and Alteryx, Inc. (NYSE:AYX) were among the active stocks of the last trading sessions. KLA-Tencor Corporation (NASDAQ:KLAC) soared to 1.54% closing at the price of $96.51 whereas the shares of Alteryx, Inc. (NYSE:AYX) soared 10.31% with the increase of 5.48 points closing at the price of $58.64. KLA-Tencor Corporation has currently decrease -13.1% in its stock over the period of 6-months while its rival Alteryx, Inc. added 79.27% 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 KLA-Tencor Corporation (NASDAQ:KLAC) is 33% while the ROI of Alteryx, Inc. (NYSE:AYX) is -9.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, KLAC’s EBITDA Margin is 8.43 whereas AYX’s is -183.13.
Both the profitability ratios suggest that KLA-Tencor Corporation (NASDAQ:KLAC) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
KLA-Tencor Corporation (NASDAQ:KLAC) reported $2.46/share EPS for the previous quarter where analysts were predicting an EPS to be $2.21/share Thus beating the analyst Estimates with a Surprise Factor of 11.3 Percent. While, Alteryx, Inc. (NYSE:AYX) reported EPS of $0.08/share in the last quarter. The analysts projected EPS of $-0.05/share depicting a Surprise of 260 Percent.
Taking a look at Earnings per Share, Alteryx, Inc. tends to be beating the analyst estimates more than KLA-Tencor Corporation. so AYX is more profitable than KLAC.
Technical Analysis of KLA-Tencor Corporation & Alteryx, Inc.
Moving average convergence divergence (MACD) shows that KLA-Tencor Corporation (NASDAQ:KLAC) is on a PRICE RELATIVITY trend While Alteryx, Inc. (NYSE:AYX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the KLA-Tencor Corporation was in BULLISH territory and Alteryx, Inc. was in BULLISH territory.
KLAC’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While AYX’s candle is BULLISH with HIGH.
EPS Growth Rate: KLAC’s 9.94% versus AYX’s 29.3%
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 KLA-Tencor Corporation (NASDAQ:KLAC) is predicted at 9.94% while Alteryx, Inc. (NYSE:AYX) stands at 29.3%. These numbers suggest that AYX 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 KLAC stands at 3.4 while AYX is at 2.7 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 KLAC and 1.8 for AYX which means KLAC has Buy rating whereas AYX 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 KLAC is $120.62 which is 19.99% of its current price while AYX has price target of 61.44 which is 4.56% 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.
KLAC currently has price to earning P/E ratio of 11.38 whereas AYX has 0 while the forward P/E ratio for the prior stands at 10.59 and for the later it depicts the value of 0.
The price to Book P/B for KLAC is 9.56, Price to Sale is at 3.65 and for AYX these ratios stand at 19.23 and 22.69.