The shares of Hologic, Inc. (NASDAQ:HOLX) and Newmont Mining Corporation (NYSE:NEM) were among the active stocks of the last trading sessions. Hologic, Inc. (NASDAQ:HOLX) soared to 2.91% closing at the price of $42.46 whereas the shares of Newmont Mining Corporation (NYSE:NEM) declined -0.25% with the decrease of -0.08 points closing at the price of $32.42. Hologic, Inc. has currently increase 10.98% in its stock over the period of 6-months while its rival Newmont Mining Corporation subtracted -19.73% 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 Hologic, Inc. (NASDAQ:HOLX) is 14.5% while the ROI of Newmont Mining Corporation (NYSE:NEM) is 5.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HOLX’s EBITDA Margin is 13.14 whereas NEM’s is 6.88.
Both the profitability ratios suggest that Hologic, Inc. (NASDAQ:HOLX) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Hologic, Inc. (NASDAQ:HOLX) reported $0.58/share EPS for the previous quarter where analysts were predicting an EPS to be $0.58/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Newmont Mining Corporation (NYSE:NEM) reported EPS of $0.33/share in the last quarter. The analysts projected EPS of $0.2/share depicting a Surprise of 65 Percent.
Taking a look at Earnings per Share, Newmont Mining Corporation tends to be beating the analyst estimates more than Hologic, Inc.. so NEM is more profitable than HOLX.
Technical Analysis of Hologic, Inc. & Newmont Mining Corporation
Moving average convergence divergence (MACD) shows that Hologic, Inc. (NASDAQ:HOLX) is on a PRICE RELATIVITY trend While Newmont Mining Corporation (NYSE:NEM) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Hologic, Inc. was in BULLISH territory and Newmont Mining Corporation was in BULLISH territory.
HOLX’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While NEM’s candle is BEARISH with HIGH.
EPS Growth Rate: HOLX’s 8.55% versus NEM’s 2.87%
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 Hologic, Inc. (NASDAQ:HOLX) is predicted at 8.55% while Newmont Mining Corporation (NYSE:NEM) stands at 2.87%. These numbers suggest that HOLX 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 HOLX stands at 1.3 while NEM is at 4.7 whereas the debt ratio of the prior is 1.34 while the debt ratio of the later is 0.4.
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 2.3 for HOLX and 2.4 for NEM which means HOLX has Hold rating whereas NEM 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 HOLX is $44.63 which is 4.86% of its current price while NEM has price target of 40.56 which is 20.07% 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.
HOLX currently has price to earning P/E ratio of 0 whereas NEM has 38.5 while the forward P/E ratio for the prior stands at 17.55 and for the later it depicts the value of 23.91.
The price to Book P/B for HOLX is 4.74, Price to Sale is at 3.6 and for NEM these ratios stand at 1.63 and 2.42.