The shares of BioPharmX Corporation (NYSE:BPMX) and Viacom Inc. (NASDAQ:VIAB) were among the active stocks of the last trading sessions. BioPharmX Corporation (NYSE:BPMX) soared to 2.58% closing at the price of $0.18 whereas the shares of Viacom Inc. (NASDAQ:VIAB) declined -0.96% with the decrease of -0.31 points closing at the price of $32.03. BioPharmX Corporation has currently decrease -1.83% in its stock over the period of 6-months while its rival Viacom Inc. added 5.99% 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 BioPharmX Corporation (NYSE:BPMX) is 0% while the ROI of Viacom Inc. (NASDAQ:VIAB) is 14.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BPMX’s EBITDA Margin is -1.4 whereas VIAB’s is 7.76.
Both the profitability ratios suggest that Viacom Inc. (NASDAQ:VIAB) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
BioPharmX Corporation (NYSE:BPMX) reported $-0.02/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.02/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Viacom Inc. (NASDAQ:VIAB) reported EPS of $1.18/share in the last quarter. The analysts projected EPS of $1.07/share depicting a Surprise of 10.3 Percent.
Taking a look at Earnings per Share, Viacom Inc. tends to be beating the analyst estimates more than BioPharmX Corporation. so VIAB is more profitable than BPMX.
Technical Analysis of BioPharmX Corporation & Viacom Inc.
Moving average convergence divergence (MACD) shows that BioPharmX Corporation (NYSE:BPMX) is on a PRICE RELATIVITY trend While Viacom Inc. (NASDAQ:VIAB) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the BioPharmX Corporation was in BULLISH territory and Viacom Inc. was in BULLISH territory.
BPMX’s current statistics gauge that the stock candle is NEUTRAL with MEDIUM volatility. While VIAB’s candle is BEARISH with MEDIUM.
EPS Growth Rate: BPMX’s 0% versus VIAB’s 6.76%
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 BioPharmX Corporation (NYSE:BPMX) is predicted at 0% while Viacom Inc. (NASDAQ:VIAB) stands at 6.76%. These numbers suggest that VIAB 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 BPMX stands at 2.4 while VIAB is at 1.7 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 1.44.
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 BPMX and 2.7 for VIAB which means BPMX has Buy rating whereas VIAB 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 BPMX is $1.05 which is 82.86% of its current price while VIAB has price target of 35.25 which is 9.13% 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.
BPMX currently has price to earning P/E ratio of 0 whereas VIAB has 7.08 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 7.26.
The price to Book P/B for BPMX is 9.13, Price to Sale is at 494.92 and for VIAB these ratios stand at 1.84 and 1.06.