The shares of Novavax, Inc. (NASDAQ:NVAX) and Devon Energy Corporation (NYSE:DVN) were among the active stocks of the last trading sessions. Novavax, Inc. (NASDAQ:NVAX) declined to -6.6% closing at the price of $1.84 whereas the shares of Devon Energy Corporation (NYSE:DVN) declined -3.37% with the decrease of -1.14 points closing at the price of $32.72. Novavax, Inc. has currently increase 10.84% in its stock over the period of 6-months while its rival Devon Energy Corporation subtracted -20.1% 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 Novavax, Inc. (NASDAQ:NVAX) is -79.5% while the ROI of Devon Energy Corporation (NYSE:DVN) is 9.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NVAX’s EBITDA Margin is -5.18 whereas DVN’s is 9.05.
Both the profitability ratios suggest that Devon Energy Corporation (NYSE:DVN) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Novavax, Inc. (NASDAQ:NVAX) reported $-0.12/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.12/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Devon Energy Corporation (NYSE:DVN) reported EPS of $0.65/share in the last quarter. The analysts projected EPS of $0.42/share depicting a Surprise of 54.8 Percent.
Taking a look at Earnings per Share, Devon Energy Corporation tends to be beating the analyst estimates more than Novavax, Inc.. so DVN is more profitable than NVAX.
Technical Analysis of Novavax, Inc. & Devon Energy Corporation
Moving average convergence divergence (MACD) shows that Novavax, Inc. (NASDAQ:NVAX) is on a PRICE RELATIVITY trend While Devon Energy Corporation (NYSE:DVN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Novavax, Inc. was in BULLISH territory and Devon Energy Corporation was in BULLISH territory.
NVAX’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While DVN’s candle is BEARISH with HIGH.
EPS Growth Rate: NVAX’s 0% versus DVN’s 72.52%
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 Novavax, Inc. (NASDAQ:NVAX) is predicted at 0% while Devon Energy Corporation (NYSE:DVN) stands at 72.52%. These numbers suggest that DVN 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 NVAX stands at 4.5 while DVN is at 1.6 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.76.
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 2.3 for NVAX and 2 for DVN which means NVAX has Hold rating whereas DVN 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 NVAX is $3.8 which is 51.58% of its current price while DVN has price target of 51.79 which is 36.82% 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.
NVAX currently has price to earning P/E ratio of 0 whereas DVN has 0 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 11.97.
The price to Book P/B for NVAX is 0, Price to Sale is at 17.77 and for DVN these ratios stand at 2.1 and 1.46.