The shares of Bilibili Inc. (NASDAQ:BILI) and Apple Hospitality REIT, Inc. (NYSE:APLE) were among the active stocks of the last trading sessions. Bilibili Inc. (NASDAQ:BILI) declined to -4.36% closing at the price of $14.49 whereas the shares of Apple Hospitality REIT, Inc. (NYSE:APLE) soared 0.37% with the increase of 0.06 points closing at the price of $16.21. Bilibili Inc. has currently increase 26.44% in its stock over the period of 6-months while its rival Apple Hospitality REIT, Inc. subtracted -12.19% 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 Bilibili Inc. (NASDAQ:BILI) is 12% while the ROI of Apple Hospitality REIT, Inc. (NYSE:APLE) is 4.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BILI’s EBITDA Margin is 192.59 whereas APLE’s is 11.52.
Both the profitability ratios suggest that Bilibili Inc. (NASDAQ:BILI) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Bilibili Inc. (NASDAQ:BILI) reported $-0.01/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.03/share Thus beating the analyst Estimates with a Surprise Factor of 66.7 Percent. While, Apple Hospitality REIT, Inc. (NYSE:APLE) reported EPS of $0.27/share in the last quarter. The analysts projected EPS of $0.29/share depicting a Surprise of -6.9 Percent.
Taking a look at Earnings per Share, Bilibili Inc. tends to be beating the analyst estimates more than Apple Hospitality REIT, Inc.. so BILI is more profitable than APLE.
Technical Analysis of Bilibili Inc. & Apple Hospitality REIT, Inc.
Moving average convergence divergence (MACD) shows that Bilibili Inc. (NASDAQ:BILI) is on a PRICE RELATIVITY trend While Apple Hospitality REIT, Inc. (NYSE:APLE) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Bilibili Inc. was in territory and Apple Hospitality REIT, Inc. was in BEARISH territory.
BILI’s current statistics gauge that the stock candle is with volatility. While APLE’s candle is BULLISH with HIGH.
EPS Growth Rate: BILI’s 0% versus APLE’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 Bilibili Inc. (NASDAQ:BILI) is predicted at 0% while Apple Hospitality REIT, Inc. (NYSE:APLE) stands at 0%. These numbers suggest that APLE 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 BILI stands at 2.4 while APLE is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.39.
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 1.7 for BILI and 2.4 for APLE which means BILI has Buy rating whereas APLE 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 BILI is $14.58 which is 0.62% of its current price while APLE has price target of 19.5 which is 16.87% 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.
BILI currently has price to earning P/E ratio of 0 whereas APLE has 21.67 while the forward P/E ratio for the prior stands at 193.2 and for the later it depicts the value of 17.15.
The price to Book P/B for BILI is 5.53, Price to Sale is at 8.18 and for APLE these ratios stand at 1.05 and 2.99.