The shares of NantKwest, Inc. (NASDAQ:NK) and Banco Bradesco Sa (NYSE:BBD) were among the active stocks of the last trading sessions. NantKwest, Inc. (NASDAQ:NK) soared to 37.27% closing at the price of $3.72 whereas the shares of Banco Bradesco Sa (NYSE:BBD) declined -2.19% with the decrease of -0.21 points closing at the price of $9.4. NantKwest, Inc. has currently decrease -9.05% in its stock over the period of 6-months while its rival Banco Bradesco Sa added 4.35% 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 NantKwest, Inc. (NASDAQ:NK) is 0% while the ROI of Banco Bradesco Sa (NYSE:BBD) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NK’s EBITDA Margin is -1.09 whereas BBD’s is NOT AVAILABLE.
Both the profitability ratios suggest that Banco Bradesco Sa (NYSE:BBD) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
NantKwest, Inc. (NASDAQ:NK) reported $-0.3/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.37/share Thus beating the analyst Estimates with a Surprise Factor of 18.9 Percent. While, Banco Bradesco Sa (NYSE:BBD) reported EPS of $0.22/share in the last quarter. The analysts projected EPS of $0.19/share depicting a Surprise of 15.8 Percent.
Taking a look at Earnings per Share, NantKwest, Inc. tends to be beating the analyst estimates more than Banco Bradesco Sa. so NK is more profitable than BBD.
Technical Analysis of NantKwest, Inc. & Banco Bradesco Sa
Moving average convergence divergence (MACD) shows that NantKwest, Inc. (NASDAQ:NK) is on a PRICE RELATIVITY trend While Banco Bradesco Sa (NYSE:BBD) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the NantKwest, Inc. was in BULLISH territory and Banco Bradesco Sa was in BULLISH territory.
NK’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While BBD’s candle is BEARISH with MEDIUM.
EPS Growth Rate: NK’s -1.7% versus BBD’s 20.3%
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 NantKwest, Inc. (NASDAQ:NK) is predicted at -1.7% while Banco Bradesco Sa (NYSE:BBD) stands at 20.3%. These numbers suggest that BBD 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 NK stands at 5.5 while BBD is at 0 whereas the debt ratio of the prior is 0.04 while the debt ratio of the later is 0.
The values of the both ratios suggest that NK 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 3.7 for NK and 2.3 for BBD which means NK has Sell rating whereas BBD 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 NK is $3.5 which is -6.29% of its current price while BBD has price target of 9.75 which is 3.59% 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.
NK currently has price to earning P/E ratio of 0 whereas BBD has 15.26 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 10.68.
The price to Book P/B for NK is 1.62, Price to Sale is at 10324.92 and for BBD these ratios stand at 2.11 and 4.11.