The shares of Helios and Matheson Analytics Inc (NASDAQ:HMNY) and Zayo Group Holdings, Inc. (NYSE:ZAYO) were among the active stocks of the last trading sessions. Helios and Matheson Analytics Inc (NASDAQ:HMNY) declined to -1.69% closing at the price of $0.02 whereas the shares of Zayo Group Holdings, Inc. (NYSE:ZAYO) declined -25.74% with the decrease of -7.82 points closing at the price of $22.56. Helios and Matheson Analytics Inc has currently decrease -99.99% in its stock over the period of 6-months while its rival Zayo Group Holdings, Inc. subtracted -33.78% 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 Helios and Matheson Analytics Inc (NASDAQ:HMNY) is 171.2% while the ROI of Zayo Group Holdings, Inc. (NYSE:ZAYO) is 5.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HMNY’s EBITDA Margin is 0.08 whereas ZAYO’s is 11.13.
Both the profitability ratios suggest a mixed sentiment for Helios and Matheson Analytics Inc (NASDAQ:HMNY) and Zayo Group Holdings, Inc. (NYSE:ZAYO).
EPS & Surprise Factor
Helios and Matheson Analytics Inc (NASDAQ:HMNY) reported $-133.1/share EPS for the previous quarter where analysts were predicting an EPS to be $-275/share Thus beating the analyst Estimates with a Surprise Factor of 51.6 Percent. While, Zayo Group Holdings, Inc. (NYSE:ZAYO) reported EPS of $0.09/share in the last quarter. The analysts projected EPS of $0.11/share depicting a Surprise of -18.2 Percent.
Taking a look at Earnings per Share, Helios and Matheson Analytics Inc tends to be beating the analyst estimates more than Zayo Group Holdings, Inc.. so HMNY is more profitable than ZAYO.
Technical Analysis of Helios and Matheson Analytics Inc & Zayo Group Holdings, Inc.
Moving average convergence divergence (MACD) shows that Helios and Matheson Analytics Inc (NASDAQ:HMNY) is on a PRICE RELATIVITY trend While Zayo Group Holdings, Inc. (NYSE:ZAYO) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Helios and Matheson Analytics Inc was in BULLISH territory and Zayo Group Holdings, Inc. was in BEARISH territory.
HMNY’s current statistics gauge that the stock candle is NEUTRAL with LOW volatility. While ZAYO’s candle is BEARISH with HIGH.
EPS Growth Rate: HMNY’s 0% versus ZAYO’s 31.5%
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 Helios and Matheson Analytics Inc (NASDAQ:HMNY) is predicted at 0% while Zayo Group Holdings, Inc. (NYSE:ZAYO) stands at 31.5%. These numbers suggest that ZAYO 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 HMNY stands at 0.4 while ZAYO is at 1 whereas the debt ratio of the prior is 0.01 while the debt ratio of the later is 3.91.
The values of the both ratios suggest that ZAYO is more suitable investment when the liquidity and risk is the main concern.
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 3 for HMNY and 1.9 for ZAYO which means HMNY has Hold rating whereas ZAYO 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 HMNY is $3000 which is 100% of its current price while ZAYO has price target of 41.8 which is 46.03% 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.
HMNY currently has price to earning P/E ratio of 0 whereas ZAYO has 44.32 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 37.11.
The price to Book P/B for HMNY is 0, Price to Sale is at 0.19 and for ZAYO these ratios stand at 3.75 and 2.13.