The shares of Infosys Limited (NYSE:INFY) and Celldex Therapeutics, Inc. (NASDAQ:CLDX) were among the active stocks of the last trading sessions. Infosys Limited (NYSE:INFY) declined to -1.04% closing at the price of $9.51 whereas the shares of Celldex Therapeutics, Inc. (NASDAQ:CLDX) soared 12.79% with the increase of 0.04 points closing at the price of $0.38. Infosys Limited has currently increase 8.31% in its stock over the period of 6-months while its rival Celldex Therapeutics, Inc. subtracted -47.64% 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 Infosys Limited (NYSE:INFY) is 19.6% while the ROI of Celldex Therapeutics, Inc. (NASDAQ:CLDX) is -49.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, INFY’s EBITDA Margin is 12.44 whereas CLDX’s is 0.6.
Both the profitability ratios suggest that Infosys Limited (NYSE:INFY) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Infosys Limited (NYSE:INFY) reported $0.13/share EPS for the previous quarter where analysts were predicting an EPS to be $0.13/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Celldex Therapeutics, Inc. (NASDAQ:CLDX) reported EPS of $-0.04/share in the last quarter. The analysts projected EPS of $-0.15/share depicting a Surprise of 73.3 Percent.
Taking a look at Earnings per Share, Celldex Therapeutics, Inc. tends to be beating the analyst estimates more than Infosys Limited. so CLDX is more profitable than INFY.
Technical Analysis of Infosys Limited & Celldex Therapeutics, Inc.
Moving average convergence divergence (MACD) shows that Infosys Limited (NYSE:INFY) is on a PRICE RELATIVITY trend While Celldex Therapeutics, Inc. (NASDAQ:CLDX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Infosys Limited was in BULLISH territory and Celldex Therapeutics, Inc. was in BULLISH territory.
INFY’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While CLDX’s candle is NEUTRAL with MEDIUM.
EPS Growth Rate: INFY’s 8% versus CLDX’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 Infosys Limited (NYSE:INFY) is predicted at 8% while Celldex Therapeutics, Inc. (NASDAQ:CLDX) stands at 0%. These numbers suggest that INFY 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 INFY stands at 3.3 while CLDX is at 6 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 2.9 for INFY and 2.7 for CLDX which means INFY has Hold rating whereas CLDX 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 INFY is $10.57 which is 10.03% of its current price while CLDX has price target of 4.22 which is 91% 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.
INFY currently has price to earning P/E ratio of 18.65 whereas CLDX has 0 while the forward P/E ratio for the prior stands at 16.89 and for the later it depicts the value of 0.
The price to Book P/B for INFY is 4.66, Price to Sale is at 3.91 and for CLDX these ratios stand at 0.44 and 4.36.