The shares of Tableau Software, Inc. (NYSE:DATA) and GTT Communications, Inc. (NYSE:GTT) were among the active stocks of the last trading sessions. Tableau Software, Inc. (NYSE:DATA) declined to -1.24% closing at the price of $119.66 whereas the shares of GTT Communications, Inc. (NYSE:GTT) declined -9.45% with the decrease of -3.65 points closing at the price of $34.99. Tableau Software, Inc. has currently increase 25.96% in its stock over the period of 6-months while its rival GTT Communications, Inc. subtracted -31.86% 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 Tableau Software, Inc. (NYSE:DATA) is -14.6% while the ROI of GTT Communications, Inc. (NYSE:GTT) is 1.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DATA’s EBITDA Margin is -60.53 whereas GTT’s is 21.73.
Both the profitability ratios suggest that GTT Communications, Inc. (NYSE:GTT) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Tableau Software, Inc. (NYSE:DATA) reported $-0.07/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.11/share Thus beating the analyst Estimates with a Surprise Factor of 36.4 Percent. While, GTT Communications, Inc. (NYSE:GTT) reported EPS of $-0.43/share in the last quarter. The analysts projected EPS of $-0.61/share depicting a Surprise of 29.5 Percent.
Taking a look at Earnings per Share, Tableau Software, Inc. tends to be beating the analyst estimates more than GTT Communications, Inc.. so DATA is more profitable than GTT.
Technical Analysis of Tableau Software, Inc. & GTT Communications, Inc.
Moving average convergence divergence (MACD) shows that Tableau Software, Inc. (NYSE:DATA) is on a PRICE RELATIVITY trend While GTT Communications, Inc. (NYSE:GTT) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Tableau Software, Inc. was in BULLISH territory and GTT Communications, Inc. was in BULLISH territory.
DATA’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While GTT’s candle is BEARISH with HIGH.
EPS Growth Rate: DATA’s 0% versus GTT’s 25%
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 Tableau Software, Inc. (NYSE:DATA) is predicted at 0% while GTT Communications, Inc. (NYSE:GTT) stands at 25%. These numbers suggest that GTT 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 DATA stands at 2.6 while GTT is at 0.7 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 6.39.
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 DATA and 2.1 for GTT which means DATA has Hold rating whereas GTT 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 DATA is $114.48 which is -4.52% of its current price while GTT has price target of 50.67 which is 30.95% 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.
DATA currently has price to earning P/E ratio of 0 whereas GTT has 0 while the forward P/E ratio for the prior stands at 716.53 and for the later it depicts the value of 0.
The price to Book P/B for DATA is 10.38, Price to Sale is at 10.19 and for GTT these ratios stand at 3.36 and 1.83.