The shares of Sesen Bio, Inc. (NASDAQ:SESN) and MasTec, Inc. (NYSE:MTZ) were among the active stocks of the last trading sessions. Sesen Bio, Inc. (NASDAQ:SESN) soared to 20.78% closing at the price of $1.86 whereas the shares of MasTec, Inc. (NYSE:MTZ) soared 3.49% with the increase of 1.71 points closing at the price of $50.67. Sesen Bio, Inc. has currently decrease -33.81% in its stock over the period of 6-months while its rival MasTec, Inc. added 4.58% 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 Sesen Bio, Inc. (NASDAQ:SESN) is -162.5% while the ROI of MasTec, Inc. (NYSE:MTZ) is 9.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SESN’s EBITDA Margin is -2.76 whereas MTZ’s is 8.98.
Both the profitability ratios suggest that MasTec, Inc. (NYSE:MTZ) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Sesen Bio, Inc. (NASDAQ:SESN) reported $-0.18/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.1/share Thus lagging the analyst Estimates with a Surprise Factor of -80 Percent. While, MasTec, Inc. (NYSE:MTZ) reported EPS of $1.33/share in the last quarter. The analysts projected EPS of $1.26/share depicting a Surprise of 5.6 Percent.
Taking a look at Earnings per Share, MasTec, Inc. tends to be beating the analyst estimates more than Sesen Bio, Inc.. so MTZ is more profitable than SESN.
Technical Analysis of Sesen Bio, Inc. & MasTec, Inc.
Moving average convergence divergence (MACD) shows that Sesen Bio, Inc. (NASDAQ:SESN) is on a PRICE RELATIVITY trend While MasTec, Inc. (NYSE:MTZ) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Sesen Bio, Inc. was in BULLISH territory and MasTec, Inc. was in BULLISH territory.
SESN’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While MTZ’s candle is BEARISH with HIGH.
EPS Growth Rate: SESN’s 0% versus MTZ’s 14.99%
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 Sesen Bio, Inc. (NASDAQ:SESN) is predicted at 0% while MasTec, Inc. (NYSE:MTZ) stands at 14.99%. These numbers suggest that MTZ 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 SESN stands at 14.1 while MTZ is at 1.9 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 1.19.
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 1.5 for SESN and 1.5 for MTZ which means SESN has Buy rating whereas MTZ 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 SESN is $5 which is 62.8% of its current price while MTZ has price target of 62.15 which is 18.47% 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.
SESN currently has price to earning P/E ratio of 0 whereas MTZ has 19.55 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 11.99.
The price to Book P/B for SESN is 1.63, Price to Sale is at 0 and for MTZ these ratios stand at 2.66 and 0.58.