The shares of Ameri Holdings, Inc. (NASDAQ:AMRH) and Tribune Media Company (NYSE:TRCO) were among the active stocks of the last trading sessions. Ameri Holdings, Inc. (NASDAQ:AMRH) declined to -3.39% closing at the price of $0.28 whereas the shares of Tribune Media Company (NYSE:TRCO) soared 0.13% with the increase of 0.05 points closing at the price of $38.92. Ameri Holdings, Inc. has currently decrease -77.91% in its stock over the period of 6-months while its rival Tribune Media Company added 3.32% 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 Ameri Holdings, Inc. (NASDAQ:AMRH) is -36% while the ROI of Tribune Media Company (NYSE:TRCO) is -1.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AMRH’s EBITDA Margin is -4.5 whereas TRCO’s is 10.12.
Both the profitability ratios suggest that Tribune Media Company (NYSE:TRCO) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Ameri Holdings, Inc. (NASDAQ:AMRH) reported $-0.06/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.08/share Thus beating the analyst Estimates with a Surprise Factor of 25 Percent. While, Tribune Media Company (NYSE:TRCO) reported EPS of $0.99/share in the last quarter. The analysts projected EPS of $0.64/share depicting a Surprise of 54.7 Percent.
Taking a look at Earnings per Share, Tribune Media Company tends to be beating the analyst estimates more than Ameri Holdings, Inc.. so TRCO is more profitable than AMRH.
Technical Analysis of Ameri Holdings, Inc. & Tribune Media Company
Moving average convergence divergence (MACD) shows that Ameri Holdings, Inc. (NASDAQ:AMRH) is on a PRICE RELATIVITY trend While Tribune Media Company (NYSE:TRCO) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Ameri Holdings, Inc. was in BEARISH territory and Tribune Media Company was in BULLISH territory.
AMRH’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While TRCO’s candle is BULLISH with MEDIUM.
EPS Growth Rate: AMRH’s 0% versus TRCO’s 31.39%
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 Ameri Holdings, Inc. (NASDAQ:AMRH) is predicted at 0% while Tribune Media Company (NYSE:TRCO) stands at 31.39%. These numbers suggest that TRCO 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 AMRH stands at 0.4 while TRCO is at 3.2 whereas the debt ratio of the prior is 0.27 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 AMRH and 2.5 for TRCO which means AMRH has Buy rating whereas TRCO 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 AMRH is $3 which is 90.67% of its current price while TRCO has price target of 40.17 which is 3.11% 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.
AMRH currently has price to earning P/E ratio of 0 whereas TRCO has 12.68 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 19.17.
The price to Book P/B for AMRH is 0.29, Price to Sale is at 0.14 and for TRCO these ratios stand at 1 and 1.82.