Which Company would you put your All In? Sangamo Therapeutics, Inc. (SGMO) or Pitney Bowes Inc. (PBI)

The shares of Sangamo Therapeutics, Inc. (NASDAQ:SGMO) and Pitney Bowes Inc. (NYSE:PBI) were among the active stocks of the last trading sessions. Sangamo Therapeutics, Inc. (NASDAQ:SGMO) declined to -4.76% closing at the price of $13.62 whereas the shares of Pitney Bowes Inc. (NYSE:PBI) soared 1.24% with the increase of 0.1 points closing at the price of $8.14. Sangamo Therapeutics, Inc. has currently decrease -11.27% in its stock over the period of 6-months while its rival Pitney Bowes Inc. subtracted -11.14% 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 Sangamo Therapeutics, Inc. (NASDAQ:SGMO) is -26.5% while the ROI of Pitney Bowes Inc. (NYSE:PBI) is 8.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SGMO’s EBITDA Margin is -12.69 whereas PBI’s is 6.42.

Both the profitability ratios suggest that Pitney Bowes Inc. (NYSE:PBI) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Sangamo Therapeutics, Inc. (NASDAQ:SGMO) reported $-0.13/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.15/share Thus beating the analyst Estimates with a Surprise Factor of 13.3 Percent. While, Pitney Bowes Inc. (NYSE:PBI) reported EPS of $0.27/share in the last quarter. The analysts projected EPS of $0.26/share depicting a Surprise of 3.8 Percent.

Taking a look at Earnings per Share, Sangamo Therapeutics, Inc. tends to be beating the analyst estimates more than Pitney Bowes Inc.. so SGMO is more profitable than PBI.

Technical Analysis of Sangamo Therapeutics, Inc. & Pitney Bowes Inc.

Moving average convergence divergence (MACD) shows that Sangamo Therapeutics, Inc. (NASDAQ:SGMO) is on a PRICE RELATIVITY trend While Pitney Bowes Inc. (NYSE:PBI) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Sangamo Therapeutics, Inc. was in BULLISH territory and Pitney Bowes Inc. was in BULLISH territory.

SGMO’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While PBI’s candle is BULLISH with HIGH.

EPS Growth Rate: SGMO’s 0% versus PBI’s 4%

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 Sangamo Therapeutics, Inc. (NASDAQ:SGMO) is predicted at 0% while Pitney Bowes Inc. (NYSE:PBI) stands at 4%. These numbers suggest that PBI 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 SGMO stands at 7.2 while PBI is at 1.2 whereas the debt ratio of the prior is 0.07 while the debt ratio of the later is 18.28.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

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 1.6 for SGMO and 2.2 for PBI which means SGMO has Buy rating whereas PBI 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 SGMO is $26.43 which is 48.47% of its current price while PBI has price target of 11.33 which is 28.16% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

SGMO currently has price to earning P/E ratio of 0 whereas PBI has 7.85 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 6.58.

The price to Book P/B for SGMO is 3.41, Price to Sale is at 23.6 and for PBI these ratios stand at 7.83 and 0.43.