The shares of Alteryx, Inc. (NYSE:AYX) and Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) were among the active stocks of the last trading sessions. Alteryx, Inc. (NYSE:AYX) declined to -0.6% closing at the price of $58.29 whereas the shares of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) soared 1.34% with the increase of 0.16 points closing at the price of $12.08. Alteryx, Inc. has currently increase 76.64% in its stock over the period of 6-months while its rival Ironwood Pharmaceuticals, Inc. subtracted -34.84% 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 Alteryx, Inc. (NYSE:AYX) is -9.6% while the ROI of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is -19.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AYX’s EBITDA Margin is -183.13 whereas IRWD’s is -32.19.
Both the profitability ratios suggest a mixed sentiment for Alteryx, Inc. (NYSE:AYX) and Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD).
EPS & Surprise Factor
Alteryx, Inc. (NYSE:AYX) reported $0.08/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.05/share Thus beating the analyst Estimates with a Surprise Factor of 260 Percent. While, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) reported EPS of $-0.38/share in the last quarter. The analysts projected EPS of $-0.17/share depicting a Surprise of -123.5 Percent.
Taking a look at Earnings per Share, Alteryx, Inc. tends to be beating the analyst estimates more than Ironwood Pharmaceuticals, Inc.. so AYX is more profitable than IRWD.
Technical Analysis of Alteryx, Inc. & Ironwood Pharmaceuticals, Inc.
Moving average convergence divergence (MACD) shows that Alteryx, Inc. (NYSE:AYX) is on a PRICE RELATIVITY trend While Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Alteryx, Inc. was in BULLISH territory and Ironwood Pharmaceuticals, Inc. was in BEARISH territory.
AYX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While IRWD’s candle is BULLISH with HIGH.
EPS Growth Rate: AYX’s 29.3% versus IRWD’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 Alteryx, Inc. (NYSE:AYX) is predicted at 29.3% while Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) stands at 0%. These numbers suggest that AYX 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 AYX stands at 2.7 while IRWD is at 2.9 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.
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 1.8 for AYX and 2.7 for IRWD which means AYX has Buy rating whereas IRWD 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 AYX is $61.44 which is 5.13% of its current price while IRWD has price target of 19.18 which is 37.02% 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.
AYX currently has price to earning P/E ratio of 0 whereas IRWD has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 61.32.
The price to Book P/B for AYX is 19.11, Price to Sale is at 22.56 and for IRWD these ratios stand at 0 and 5.36.