The shares of CyberArk Software Ltd. (NASDAQ:CYBR) and Carvana Co. (NYSE:CVNA) were among the active stocks of the last trading sessions. CyberArk Software Ltd. (NASDAQ:CYBR) soared to 8.79% closing at the price of $78 whereas the shares of Carvana Co. (NYSE:CVNA) soared 11.48% with the increase of 5.3 points closing at the price of $51.47. CyberArk Software Ltd. has currently increase 32.7% in its stock over the period of 6-months while its rival Carvana Co. added 87.16% 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 CyberArk Software Ltd. (NASDAQ:CYBR) is 5.2% while the ROI of Carvana Co. (NYSE:CVNA) is -49.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CYBR’s EBITDA Margin is 51.88 whereas CVNA’s is -12.05.
Both the profitability ratios suggest that CyberArk Software Ltd. (NASDAQ:CYBR) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
CyberArk Software Ltd. (NASDAQ:CYBR) reported $0.48/share EPS for the previous quarter where analysts were predicting an EPS to be $0.27/share Thus beating the analyst Estimates with a Surprise Factor of 77.8 Percent. While, Carvana Co. (NYSE:CVNA) reported EPS of $-0.4/share in the last quarter. The analysts projected EPS of $-0.37/share depicting a Surprise of -8.1 Percent.
Taking a look at Earnings per Share, CyberArk Software Ltd. tends to be beating the analyst estimates more than Carvana Co.. so CYBR is more profitable than CVNA.
Technical Analysis of CyberArk Software Ltd. & Carvana Co.
Moving average convergence divergence (MACD) shows that CyberArk Software Ltd. (NASDAQ:CYBR) is on a PRICE RELATIVITY trend While Carvana Co. (NYSE:CVNA) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the CyberArk Software Ltd. was in BULLISH territory and Carvana Co. was in BULLISH territory.
CYBR’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While CVNA’s candle is BEARISH with HIGH.
EPS Growth Rate: CYBR’s 29.3% versus CVNA’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 CyberArk Software Ltd. (NASDAQ:CYBR) is predicted at 29.3% while Carvana Co. (NYSE:CVNA) stands at 0%. These numbers suggest that CYBR 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 CYBR stands at 3.4 while CVNA is at 1.5 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 6.61.
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 1.9 for CYBR and 1.9 for CVNA which means CYBR has Buy rating whereas CVNA 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 CYBR is $78.88 which is 1.12% of its current price while CVNA has price target of 61.15 which is 15.83% 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.
CYBR currently has price to earning P/E ratio of 107.29 whereas CVNA has 0 while the forward P/E ratio for the prior stands at 45.35 and for the later it depicts the value of 0.
The price to Book P/B for CYBR is 6.96, Price to Sale is at 9.71 and for CVNA these ratios stand at 21.9 and 5.21.