The shares of Horizon Global Corporation (NYSE:HZN) and Matinas Biopharma Holdings, Inc. (NYSE:MTNB) were among the active stocks of the last trading sessions. Horizon Global Corporation (NYSE:HZN) declined to -54.61% closing at the price of $2.56 whereas the shares of Matinas Biopharma Holdings, Inc. (NYSE:MTNB) soared 14.62% with the increase of 0.13 points closing at the price of $1.02. Horizon Global Corporation has currently decrease -53.2% in its stock over the period of 6-months while its rival Matinas Biopharma Holdings, Inc. added 96.15% 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 Horizon Global Corporation (NYSE:HZN) is 7.7% while the ROI of Matinas Biopharma Holdings, Inc. (NYSE:MTNB) is 3877.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HZN’s EBITDA Margin is 10.43 whereas MTNB’s is -5.2.
Both the profitability ratios suggest a mixed sentiment for Horizon Global Corporation (NYSE:HZN) and Matinas Biopharma Holdings, Inc. (NYSE:MTNB).
EPS & Surprise Factor
Horizon Global Corporation (NYSE:HZN) reported $-0.01/share EPS for the previous quarter where analysts were predicting an EPS to be $0.19/share Thus lagging the analyst Estimates with a Surprise Factor of -105.3 Percent. While, Matinas Biopharma Holdings, Inc. (NYSE:MTNB) reported EPS of $-0.04/share in the last quarter. The analysts projected EPS of $-0.04/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Matinas Biopharma Holdings, Inc. tends to be beating the analyst estimates more than Horizon Global Corporation. so MTNB is more profitable than HZN.
Technical Analysis of Horizon Global Corporation & Matinas Biopharma Holdings, Inc.
Moving average convergence divergence (MACD) shows that Horizon Global Corporation (NYSE:HZN) is on a PRICE RELATIVITY trend While Matinas Biopharma Holdings, Inc. (NYSE:MTNB) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Horizon Global Corporation was in BEARISH territory and Matinas Biopharma Holdings, Inc. was in BULLISH territory.
HZN’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While MTNB’s candle is BULLISH with MEDIUM.
EPS Growth Rate: HZN’s 2.7% versus MTNB’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 Horizon Global Corporation (NYSE:HZN) is predicted at 2.7% while Matinas Biopharma Holdings, Inc. (NYSE:MTNB) stands at 0%. These numbers suggest that HZN 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 HZN stands at 1.6 while MTNB is at 6.3 whereas the debt ratio of the prior is 18.77 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 2.8 for HZN and 2 for MTNB which means HZN has Hold rating whereas MTNB 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 HZN is $8.63 which is 70.34% of its current price while MTNB has price target of 2 which is 49% 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.
HZN currently has price to earning P/E ratio of 0 whereas MTNB has 0 while the forward P/E ratio for the prior stands at 4.49 and for the later it depicts the value of 0.
The price to Book P/B for HZN is 3.76, Price to Sale is at 0.07 and for MTNB these ratios stand at 0 and 481.85.