The shares of Agenus Inc. have increased by more than 13.45% this year alone. The shares recently went up by 4.65% or $0.12 and now trades at $2.70. The shares of Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS), has jumped by 85.71% year to date as of 08/12/2019. The shares currently trade at $4.94 and have been able to report a change of -2.18% over the past one week.
The stock of Agenus Inc. and Pieris Pharmaceuticals, Inc. were two of the most active stocks on Monday. Investors seem to be very interested in what happens to the stocks of these two companies but do investors favor one over the other? We will analyze the growth, profitability, risk, valuation, and insider trends of both companies and see which one investors prefer.
Growth alone cannot be used to see if the company will be valuable. Shareholders will be the losers if a company invest in ventures that aren’t profitable enough to support upbeat growth. In order for us to accurately measure profitability and return, we will be using the EBITDA margin and Return on Investment (ROI), which balances the difference in capital structure. The ROI of AGEN is 84.50% while that of PIRS is -76.50%. These figures suggest that AGEN ventures generate a higher ROI than that of PIRS.
The value of a stock is ultimately determined by the amount of cash flow that the investors have available. Over the last 12 months, AGEN’s free cash flow per share is a positive 0.19, while that of PIRS is negative -0.05.Liquidity and Financial Risk
The ability of a company to meet up with its short-term obligations and be able to clear its longer-term debts is measured using Liquidity and leverage ratios. The current ratio for AGEN is 1.70 and that of PIRS is 3.00. This implies that it is easier for AGEN to cover its immediate obligations over the next 12 months than PIRS.
AGEN currently trades at a P/S of 3.18 while PIRS trades at a P/B of 8.37, and a P/S of 7.46. This means that looking at the earnings, book values and sales basis, AGEN is the cheaper one. It is very obvious that earnings are the most important factors to investors, thus analysts are most likely to place their bet on the P/E.Analyst Price Targets and Opinions
The mistake some people make is that they think a cheap stock has more value to it. In order to know the value of a stock, there is need to compare its current price to its likely trading price in the future. The price of AGEN is currently at a -46% to its one-year price target of 5.00. Looking at its rival pricing, PIRS is at a -32.61% relative to its price target of 7.33.
When looking at the investment recommendation on say a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell), AGEN is given a 1.30 while 1.80 placed for PIRS. This means that analysts are more bullish on the outlook for PIRS stocks.Insider Activity and Investor Sentiment
Short interest or otherwise called the percentage of a stock’s tradable shares currently being shorted is another data that investors use to get a handle on sentiment. The short ratio for AGEN is 11.78 while that of PIRS is just 3.54. This means that analysts are more bullish on the forecast for PIRS stock.
The stock of Pieris Pharmaceuticals, Inc. defeats that of Agenus Inc. when the two are compared, with PIRS taking 4 out of the total factors that were been considered. PIRS happens to be more profitable, generates a higher ROI, has higher cash flow per share, higher liquidity and has a lower financial risk. When looking at the stock valuation, PIRS is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for PIRS is better on when it is viewed on short interest.