The shares of Senseonics Holdings, Inc. (NYSE:SENS) and Sunrun Inc. (NASDAQ:RUN) were among the active stocks of the last trading sessions. Senseonics Holdings, Inc. (NYSE:SENS) soared to 1.28% closing at the price of $3.97 whereas the shares of Sunrun Inc. (NASDAQ:RUN) declined -4.55% with the decrease of -0.6 points closing at the price of $12.59. Senseonics Holdings, Inc. has currently increase 31.02% in its stock over the period of 6-months while its rival Sunrun Inc. added 17.77% 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 Senseonics Holdings, Inc. (NYSE:SENS) is -177.6% while the ROI of Sunrun Inc. (NASDAQ:RUN) is -7.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SENS’s EBITDA Margin is -8.5 whereas RUN’s is -91.12.
Both the profitability ratios suggest a mixed sentiment for Senseonics Holdings, Inc. (NYSE:SENS) and Sunrun Inc. (NASDAQ:RUN).
EPS & Surprise Factor
Senseonics Holdings, Inc. (NYSE:SENS) reported $-0.18/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.14/share Thus lagging the analyst Estimates with a Surprise Factor of -28.6 Percent. While, Sunrun Inc. (NASDAQ:RUN) reported EPS of $-0.03/share in the last quarter. The analysts projected EPS of $0.27/share depicting a Surprise of -111.1 Percent.
Taking a look at Earnings per Share, Senseonics Holdings, Inc. tends to be beating the analyst estimates more than Sunrun Inc.. so SENS is more profitable than RUN.
Technical Analysis of Senseonics Holdings, Inc. & Sunrun Inc.
Moving average convergence divergence (MACD) shows that Senseonics Holdings, Inc. (NYSE:SENS) is on a PRICE RELATIVITY trend While Sunrun Inc. (NASDAQ:RUN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Senseonics Holdings, Inc. was in BULLISH territory and Sunrun Inc. was in BULLISH territory.
SENS’s current statistics gauge that the stock candle is BULLISH with LOW volatility. While RUN’s candle is BULLISH with HIGH.
EPS Growth Rate: SENS’s 0% versus RUN’s 3.97%
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 Senseonics Holdings, Inc. (NYSE:SENS) is predicted at 0% while Sunrun Inc. (NASDAQ:RUN) stands at 3.97%. These numbers suggest that RUN 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 SENS stands at 8.3 while RUN is at 1.5 whereas the debt ratio of the prior is 0.51 while the debt ratio of the later is 1.85.
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 1.3 for SENS and 2 for RUN which means SENS has Buy rating whereas RUN 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 SENS is $5.86 which is 32.25% of its current price while RUN has price target of 16.72 which is 24.7% 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.
SENS currently has price to earning P/E ratio of 0 whereas RUN has 8.98 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 12.48.
The price to Book P/B for SENS is 5.22, Price to Sale is at 60.4 and for RUN these ratios stand at 1.44 and 2.23.