The shares of Invitae Corporation (NYSE:NVTA) and Knight Transportation, Inc. (NYSE:KNX) were among the active stocks of the last trading sessions. Invitae Corporation (NYSE:NVTA) declined to -11.27% closing at the price of $12.83 whereas the shares of Knight Transportation, Inc. (NYSE:KNX) soared 2.17% with the increase of 0.73 points closing at the price of $34.32. Invitae Corporation has currently increase 85.4% in its stock over the period of 6-months while its rival Knight Transportation, Inc. subtracted -14.56% 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 Invitae Corporation (NYSE:NVTA) is -42.5% while the ROI of Knight Transportation, Inc. (NYSE:KNX) is 2.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NVTA’s EBITDA Margin is -7.51 whereas KNX’s is 8.29.
Both the profitability ratios suggest that Knight Transportation, Inc. (NYSE:KNX) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Invitae Corporation (NYSE:NVTA) reported $-0.45/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.47/share Thus beating the analyst Estimates with a Surprise Factor of 4.3 Percent. While, Knight Transportation, Inc. (NYSE:KNX) reported EPS of $0.65/share in the last quarter. The analysts projected EPS of $0.58/share depicting a Surprise of 12.1 Percent.
Taking a look at Earnings per Share, Knight Transportation, Inc. tends to be beating the analyst estimates more than Invitae Corporation. so KNX is more profitable than NVTA.
Technical Analysis of Invitae Corporation & Knight Transportation, Inc.
Moving average convergence divergence (MACD) shows that Invitae Corporation (NYSE:NVTA) is on a PRICE RELATIVITY trend While Knight Transportation, Inc. (NYSE:KNX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Invitae Corporation was in BULLISH territory and Knight Transportation, Inc. was in BULLISH territory.
NVTA’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While KNX’s candle is BEARISH with HIGH.
EPS Growth Rate: NVTA’s 8% versus KNX’s 27.37%
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 Invitae Corporation (NYSE:NVTA) is predicted at 8% while Knight Transportation, Inc. (NYSE:KNX) stands at 27.37%. These numbers suggest that KNX 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 NVTA stands at 3.8 while KNX is at 1.5 whereas the debt ratio of the prior is 0.45 while the debt ratio of the later is 0.16.
The values of the both ratios suggest that NVTA is more suitable investment when the liquidity and risk is the main concern.
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 1.8 for NVTA and 1.9 for KNX which means NVTA has Buy rating whereas KNX 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 NVTA is $16.44 which is 21.96% of its current price while KNX has price target of 44.05 which is 22.09% 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.
NVTA currently has price to earning P/E ratio of 0 whereas KNX has 17.51 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 12.7.
The price to Book P/B for NVTA is 6.29, Price to Sale is at 7.99 and for KNX these ratios stand at 1.14 and 1.15.