The shares of SailPoint Technologies Holdings, Inc. (NYSE:SAIL) and Weyerhaeuser Company (NYSE:WY) were among the active stocks of the last trading sessions. SailPoint Technologies Holdings, Inc. (NYSE:SAIL) declined to -3.25% closing at the price of $26.22 whereas the shares of Weyerhaeuser Company (NYSE:WY) declined -0.95% with the decrease of -0.26 points closing at the price of $27.25. SailPoint Technologies Holdings, Inc. has currently increase 12.68% in its stock over the period of 6-months while its rival Weyerhaeuser Company subtracted -25.59% 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 SailPoint Technologies Holdings, Inc. (NYSE:SAIL) is 1.5% while the ROI of Weyerhaeuser Company (NYSE:WY) is 6.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SAIL’s EBITDA Margin is 144.6 whereas WY’s is 12.45.
Both the profitability ratios suggest a mixed sentiment for SailPoint Technologies Holdings, Inc. (NYSE:SAIL) and Weyerhaeuser Company (NYSE:WY).
EPS & Surprise Factor
SailPoint Technologies Holdings, Inc. (NYSE:SAIL) reported $0.12/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.02/share Thus beating the analyst Estimates with a Surprise Factor of 700 Percent. While, Weyerhaeuser Company (NYSE:WY) reported EPS of $0.28/share in the last quarter. The analysts projected EPS of $0.37/share depicting a Surprise of -24.3 Percent.
Taking a look at Earnings per Share, SailPoint Technologies Holdings, Inc. tends to be beating the analyst estimates more than Weyerhaeuser Company. so SAIL is more profitable than WY.
Technical Analysis of SailPoint Technologies Holdings, Inc. & Weyerhaeuser Company
Moving average convergence divergence (MACD) shows that SailPoint Technologies Holdings, Inc. (NYSE:SAIL) is on a PRICE RELATIVITY trend While Weyerhaeuser Company (NYSE:WY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the SailPoint Technologies Holdings, Inc. was in BULLISH territory and Weyerhaeuser Company was in BULLISH territory.
SAIL’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While WY’s candle is BEARISH with HIGH.
EPS Growth Rate: SAIL’s 15% versus WY’s 5%
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 SailPoint Technologies Holdings, Inc. (NYSE:SAIL) is predicted at 15% while Weyerhaeuser Company (NYSE:WY) stands at 5%. These numbers suggest that SAIL 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 SAIL stands at 1.5 while WY is at 1.3 whereas the debt ratio of the prior is 0.03 while the debt ratio of the later is 0.71.
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 SAIL and 1.8 for WY which means SAIL has Buy rating whereas WY 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 SAIL is $32 which is 18.06% of its current price while WY has price target of 33.5 which is 18.66% 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.
SAIL currently has price to earning P/E ratio of 0 whereas WY has 17.76 while the forward P/E ratio for the prior stands at 144.86 and for the later it depicts the value of 22.73.
The price to Book P/B for SAIL is 6.92, Price to Sale is at 10.79 and for WY these ratios stand at 2.27 and 2.68.