The shares of Pan American Silver Corp. (NASDAQ:PAAS) and OraSure Technologies, Inc. (NASDAQ:OSUR) were among the active stocks of the last trading sessions. Pan American Silver Corp. (NASDAQ:PAAS) soared to 2.43% closing at the price of $14.35 whereas the shares of OraSure Technologies, Inc. (NASDAQ:OSUR) declined -10.36% with the decrease of -1.53 points closing at the price of $13.19. Pan American Silver Corp. has currently decrease -20.72% in its stock over the period of 6-months while its rival OraSure Technologies, Inc. subtracted -16.54% 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 Pan American Silver Corp. (NASDAQ:PAAS) is 8.5% while the ROI of OraSure Technologies, Inc. (NASDAQ:OSUR) is 14.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PAAS’s EBITDA Margin is 7.23 whereas OSUR’s is 29.61.
Both the profitability ratios suggest that OraSure Technologies, Inc. (NASDAQ:OSUR) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Pan American Silver Corp. (NASDAQ:PAAS) reported $-0.03/share EPS for the previous quarter where analysts were predicting an EPS to be $0.05/share Thus lagging the analyst Estimates with a Surprise Factor of -160 Percent. While, OraSure Technologies, Inc. (NASDAQ:OSUR) reported EPS of $0.13/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, OraSure Technologies, Inc. tends to be beating the analyst estimates more than Pan American Silver Corp.. so OSUR is more profitable than PAAS.
Technical Analysis of Pan American Silver Corp. & OraSure Technologies, Inc.
Moving average convergence divergence (MACD) shows that Pan American Silver Corp. (NASDAQ:PAAS) is on a PRICE RELATIVITY trend While OraSure Technologies, Inc. (NASDAQ:OSUR) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Pan American Silver Corp. was in BEARISH territory and OraSure Technologies, Inc. was in BULLISH territory.
PAAS’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While OSUR’s candle is BEARISH with HIGH.
EPS Growth Rate: PAAS’s 9.57% versus OSUR’s 20%
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 Pan American Silver Corp. (NASDAQ:PAAS) is predicted at 9.57% while OraSure Technologies, Inc. (NASDAQ:OSUR) stands at 20%. These numbers suggest that OSUR 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 PAAS stands at 4.1 while OSUR is at 9.6 whereas the debt ratio of the prior is 0.01 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 2.3 for PAAS and 2.4 for OSUR which means PAAS has Hold rating whereas OSUR 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 PAAS is $18.92 which is 24.15% of its current price while OSUR has price target of 19.25 which is 31.48% 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.
PAAS currently has price to earning P/E ratio of 14.72 whereas OSUR has 36.05 while the forward P/E ratio for the prior stands at 22.89 and for the later it depicts the value of 26.18.
The price to Book P/B for PAAS is 1.38, Price to Sale is at 2.6 and for OSUR these ratios stand at 3.04 and 4.42.