The shares of Qurate Retail, Inc. (NASDAQ:QRTEA) and Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) were among the active stocks of the last trading sessions. Qurate Retail, Inc. (NASDAQ:QRTEA) declined to -1.66% closing at the price of $23.67 whereas the shares of Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) declined -2.62% with the decrease of -0.01 points closing at the price of $0.41. Qurate Retail, Inc. has currently increase 7.49% in its stock over the period of 6-months while its rival Titan Pharmaceuticals, Inc. subtracted -41.08% 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 Qurate Retail, Inc. (NASDAQ:QRTEA) is 4.9% while the ROI of Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) is -193.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, QRTEA’s EBITDA Margin is 9.57 whereas TTNP’s is -1.2.
Both the profitability ratios suggest that Qurate Retail, Inc. (NASDAQ:QRTEA) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Qurate Retail, Inc. (NASDAQ:QRTEA) reported $0.45/share EPS for the previous quarter where analysts were predicting an EPS to be $0.46/share Thus lagging the analyst Estimates with a Surprise Factor of -2.2 Percent. While, Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) reported EPS of $-0.04/share in the last quarter. The analysts projected EPS of $-0.13/share depicting a Surprise of 69.2 Percent.
Taking a look at Earnings per Share, Titan Pharmaceuticals, Inc. tends to be beating the analyst estimates more than Qurate Retail, Inc.. so TTNP is more profitable than QRTEA.
Technical Analysis of Qurate Retail, Inc. & Titan Pharmaceuticals, Inc.
Moving average convergence divergence (MACD) shows that Qurate Retail, Inc. (NASDAQ:QRTEA) is on a PRICE RELATIVITY trend While Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Qurate Retail, Inc. was in BULLISH territory and Titan Pharmaceuticals, Inc. was in BULLISH territory.
QRTEA’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While TTNP’s candle is NEUTRAL with HIGH.
EPS Growth Rate: QRTEA’s 20% versus TTNP’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 Qurate Retail, Inc. (NASDAQ:QRTEA) is predicted at 20% while Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) stands at 0%. These numbers suggest that QRTEA 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 QRTEA stands at 1 while TTNP is at 1.8 whereas the debt ratio of the prior is 1.35 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 2.1 for QRTEA and 2 for TTNP which means QRTEA has Hold rating whereas TTNP has Buy rating.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
QRTEA currently has price to earning P/E ratio of 10.76 whereas TTNP has 0 while the forward P/E ratio for the prior stands at 10.97 and for the later it depicts the value of 0.
The price to Book P/B for QRTEA is 1.94, Price to Sale is at 0.89 and for TTNP these ratios stand at 0 and 5.69.