The shares of TiVo Corporation (NASDAQ:TIVO) and Real Goods Solar, Inc. (NASDAQ:RGSE) were among the active stocks of the last trading sessions. TiVo Corporation (NASDAQ:TIVO) declined to -14.34% closing at the price of $10.48 whereas the shares of Real Goods Solar, Inc. (NASDAQ:RGSE) declined -0.38% with the increase of 0 points closing at the price of $0.37. TiVo Corporation has currently decrease -24.43% in its stock over the period of 6-months while its rival Real Goods Solar, Inc. subtracted -66.14% 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 TiVo Corporation (NASDAQ:TIVO) is 2.8% while the ROI of Real Goods Solar, Inc. (NASDAQ:RGSE) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TIVO’s EBITDA Margin is 11.8 whereas RGSE’s is -1.08.
Both the profitability ratios suggest that TiVo Corporation (NASDAQ:TIVO) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
TiVo Corporation (NASDAQ:TIVO) reported $0.23/share EPS for the previous quarter where analysts were predicting an EPS to be $0.25/share Thus lagging the analyst Estimates with a Surprise Factor of -8 Percent. While, Real Goods Solar, Inc. (NASDAQ:RGSE) reported EPS of $-0.49/share in the last quarter. The analysts projected EPS of $-0.32/share depicting a Surprise of -53.1 Percent.
Taking a look at Earnings per Share, TiVo Corporation tends to be beating the analyst estimates more than Real Goods Solar, Inc.. so TIVO is more profitable than RGSE.
Technical Analysis of TiVo Corporation & Real Goods Solar, Inc.
Moving average convergence divergence (MACD) shows that TiVo Corporation (NASDAQ:TIVO) is on a PRICE RELATIVITY trend While Real Goods Solar, Inc. (NASDAQ:RGSE) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the TiVo Corporation was in BULLISH territory and Real Goods Solar, Inc. was in BULLISH territory.
TIVO’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While RGSE’s candle is NEUTRAL with HIGH.
EPS Growth Rate: TIVO’s 12% versus RGSE’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 TiVo Corporation (NASDAQ:TIVO) is predicted at 12% while Real Goods Solar, Inc. (NASDAQ:RGSE) stands at 0%. These numbers suggest that TIVO 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 TIVO stands at 3.5 while RGSE is at 1.4 whereas the debt ratio of the prior is 0.54 while the debt ratio of the later is 0.
The values of the both ratios suggest that TIVO 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 2 for TIVO and 0 for RGSE which means TIVO has Buy rating whereas RGSE has Strong 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 TIVO is $22.67 which is 53.77% of its current price while RGSE has price target of 2 which is 81.5% 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.
TIVO currently has price to earning P/E ratio of 32.26 whereas RGSE has 0 while the forward P/E ratio for the prior stands at 8.39 and for the later it depicts the value of 0.
The price to Book P/B for TIVO is 0.71, Price to Sale is at 1.65 and for RGSE these ratios stand at 0 and 1.