The shares of Westwater Resources, Inc. (NASDAQ:WWR) and Western Union Company (The) (NYSE:WU) were among the active stocks of the last trading sessions. Westwater Resources, Inc. (NASDAQ:WWR) soared to 1.95% closing at the price of $0.24 whereas the shares of Western Union Company (The) (NYSE:WU) soared 2.6% with the increase of 0.48 points closing at the price of $18.97. Westwater Resources, Inc. has currently decrease -49.19% in its stock over the period of 6-months while its rival Western Union Company (The) subtracted -4.58% 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 Westwater Resources, Inc. (NASDAQ:WWR) is 0% while the ROI of Western Union Company (The) (NYSE:WU) is 15.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, WWR’s EBITDA Margin is -0.59 whereas WU’s is 7.73.
Both the profitability ratios suggest that Western Union Company (The) (NYSE:WU) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Westwater Resources, Inc. (NASDAQ:WWR) reported $-0.11/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.13/share Thus beating the analyst Estimates with a Surprise Factor of 15.4 Percent. While, Western Union Company (The) (NYSE:WU) reported EPS of $0.52/share in the last quarter. The analysts projected EPS of $0.48/share depicting a Surprise of 8.3 Percent.
Taking a look at Earnings per Share, Westwater Resources, Inc. tends to be beating the analyst estimates more than Western Union Company (The). so WWR is more profitable than WU.
Technical Analysis of Westwater Resources, Inc. & Western Union Company (The)
Moving average convergence divergence (MACD) shows that Westwater Resources, Inc. (NASDAQ:WWR) is on a PRICE RELATIVITY trend While Western Union Company (The) (NYSE:WU) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Westwater Resources, Inc. was in BULLISH territory and Western Union Company (The) was in BULLISH territory.
WWR’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While WU’s candle is BULLISH with HIGH.
EPS Growth Rate: WWR’s 20% versus WU’s 3.83%
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 Westwater Resources, Inc. (NASDAQ:WWR) is predicted at 20% while Western Union Company (The) (NYSE:WU) stands at 3.83%. These numbers suggest that WWR 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 WWR stands at 1.7 while WU is at 0 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 2 for WWR and 3.2 for WU which means WWR has Buy rating whereas WU has Sell 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 WWR is $3 which is 92% of its current price while WU has price target of 20.63 which is 8.05% 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.
WWR currently has price to earning P/E ratio of 0 whereas WU has 24.9 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 9.8.
The price to Book P/B for WWR is 0.34, Price to Sale is at 0 and for WU these ratios stand at 0 and 1.52.