The shares of Pacific Biosciences of California, Inc. (NASDAQ:PACB) and Goldcorp Inc. (NYSE:GG) were among the active stocks of the last trading sessions. Pacific Biosciences of California, Inc. (NASDAQ:PACB) soared to 1.04% closing at the price of $7.8 whereas the shares of Goldcorp Inc. (NYSE:GG) soared 0.54% with the increase of 0.05 points closing at the price of $9.38. Pacific Biosciences of California, Inc. has currently increase 218.37% in its stock over the period of 6-months while its rival Goldcorp Inc. subtracted -32.08% 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 Pacific Biosciences of California, Inc. (NASDAQ:PACB) is -90.1% while the ROI of Goldcorp Inc. (NYSE:GG) is 5.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PACB’s EBITDA Margin is -6.48 whereas GG’s is 9.21.
Both the profitability ratios suggest that Goldcorp Inc. (NYSE:GG) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Pacific Biosciences of California, Inc. (NASDAQ:PACB) reported $-0.19/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.15/share Thus lagging the analyst Estimates with a Surprise Factor of -26.7 Percent. While, Goldcorp Inc. (NYSE:GG) reported EPS of $-0.08/share in the last quarter. The analysts projected EPS of $-0.01/share depicting a Surprise of -700 Percent.
Taking a look at Earnings per Share, Pacific Biosciences of California, Inc. tends to be beating the analyst estimates more than Goldcorp Inc.. so PACB is more profitable than GG.
Technical Analysis of Pacific Biosciences of California, Inc. & Goldcorp Inc.
Moving average convergence divergence (MACD) shows that Pacific Biosciences of California, Inc. (NASDAQ:PACB) is on a PRICE RELATIVITY trend While Goldcorp Inc. (NYSE:GG) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Pacific Biosciences of California, Inc. was in BULLISH territory and Goldcorp Inc. was in BULLISH territory.
PACB’s current statistics gauge that the stock candle is NEUTRAL with HIGH volatility. While GG’s candle is BULLISH with HIGH.
EPS Growth Rate: PACB’s 30% versus GG’s 6.33%
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 Pacific Biosciences of California, Inc. (NASDAQ:PACB) is predicted at 30% while Goldcorp Inc. (NYSE:GG) stands at 6.33%. These numbers suggest that PACB 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 PACB stands at 4.3 while GG is at 0.8 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.22.
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 2.4 for PACB and 2.3 for GG which means PACB has Hold rating whereas GG 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 PACB is $5.26 which is -48.29% of its current price while GG has price target of 14.13 which is 33.62% 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.
PACB currently has price to earning P/E ratio of 0 whereas GG has 107.82 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 21.76.
The price to Book P/B for PACB is 12, Price to Sale is at 8.09 and for GG these ratios stand at 0.59 and 2.62.