The shares of Cloudera, Inc. (NYSE:CLDR) and American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) were among the active stocks of the last trading sessions. Cloudera, Inc. (NYSE:CLDR) declined to -3.81% closing at the price of $14.15 whereas the shares of American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) declined -3.48% with the decrease of -0.45 points closing at the price of $12.47. Cloudera, Inc. has currently decrease -11.34% in its stock over the period of 6-months while its rival American Axle & Manufacturing Holdings, Inc. subtracted -19.03% 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 Cloudera, Inc. (NYSE:CLDR) is -80.5% while the ROI of American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is 9.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CLDR’s EBITDA Margin is -10.12 whereas AXL’s is 4.35.
Both the profitability ratios suggest that American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Cloudera, Inc. (NYSE:CLDR) reported $-0.08/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.15/share Thus beating the analyst Estimates with a Surprise Factor of 46.7 Percent. While, American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) reported EPS of $0.63/share in the last quarter. The analysts projected EPS of $0.9/share depicting a Surprise of -30 Percent.
Taking a look at Earnings per Share, Cloudera, Inc. tends to be beating the analyst estimates more than American Axle & Manufacturing Holdings, Inc.. so CLDR is more profitable than AXL.
Technical Analysis of Cloudera, Inc. & American Axle & Manufacturing Holdings, Inc.
Moving average convergence divergence (MACD) shows that Cloudera, Inc. (NYSE:CLDR) is on a PRICE RELATIVITY trend While American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Cloudera, Inc. was in BULLISH territory and American Axle & Manufacturing Holdings, Inc. was in BEARISH territory.
CLDR’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While AXL’s candle is BEARISH with HIGH.
EPS Growth Rate: CLDR’s 21.9% versus AXL’s 3.4%
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 Cloudera, Inc. (NYSE:CLDR) is predicted at 21.9% while American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) stands at 3.4%. These numbers suggest that CLDR 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 CLDR stands at 1.6 while AXL is at 1.6 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 2.21.
The values of the both ratios suggest that AXL is more suitable investment when the liquidity and risk is the main concern.
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 2.1 for CLDR and 2.3 for AXL which means CLDR has Hold rating whereas AXL 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 CLDR is $21.53 which is 34.28% of its current price while AXL has price target of 20.5 which is 39.17% 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.
CLDR currently has price to earning P/E ratio of 0 whereas AXL has 3.48 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 3.54.
The price to Book P/B for CLDR is 7.26, Price to Sale is at 5.17 and for AXL these ratios stand at 0.79 and 0.26.