The shares of Cenovus Energy Inc. have increased by more than 24.04% this year alone. The shares recently went up by 2.59% or $0.22 and now trades at $8.72. The shares of Cellect Biotechnology Ltd. (NASDAQ:APOP), has slumped by -75.24% year to date as of 08/13/2019. The shares currently trade at $0.52 and have been able to report a change of -1.66% over the past one week.
The stock of Cenovus Energy Inc. and Cellect Biotechnology Ltd. were two of the most active stocks on Tuesday. 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. These figures suggest that APOP ventures generate a higher ROI than that of CVE.
CVE currently trades at a forward P/E of 13.84, a P/B of 0.74, and a P/S of 0.67 while APOP trades at a P/B of 0.75, This means that looking at the earnings, book values and sales basis, CVE 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 CVE is currently at a -19.63% to its one-year price target of 10.85. Looking at its rival pricing, APOP is at a -95.67% relative to its price target of 12.00.
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 CVE is 11.36 while that of APOP is just 0.04. This means that analysts are more bullish on the forecast for APOP stock.
The stock of Cenovus Energy Inc. defeats that of Cellect Biotechnology Ltd. when the two are compared, with CVE taking 3 out of the total factors that were been considered. CVE 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, CVE is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for CVE is better on when it is viewed on short interest.