The shares of QuinStreet, Inc. have increased by more than 28.64% this year alone. The shares recently went down by -8.95% or -$1.06 and now trades at $10.78. The shares of Abeona Therapeutics Inc. (NASDAQ:ABEO), has jumped by 24.61% year to date as of 04/13/2018. The shares currently trade at $19.75 and have been able to report a change of 41.07% over the past one week.
The stock of QuinStreet, Inc. and Abeona Therapeutics Inc. were two of the most active stocks on Friday. 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.Profitability and Returns
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. QNST has an EBITDA margin of 3.6%, this implies that the underlying business of QNST is more profitable. These figures suggest that ABEO ventures generate a higher ROI than that of QNST.Cash Flow
The value of a stock is ultimately determined by the amount of cash flow that the investors have available. Over the last 12 months, QNST’s free cash flow per share is a positive 0, while that of ABEO is negative -0.79.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 QNST is 1.80 and that of ABEO is 25.10. This implies that it is easier for QNST to cover its immediate obligations over the next 12 months than ABEO. The debt ratio of QNST is 0.00 compared to 0.00 for ABEO. ABEO can be able to settle its long-term debts and thus is a lower financial risk than QNST.Valuation
QNST currently trades at a forward P/E of 20.65, a P/B of 4.28, and a P/S of 1.63 while ABEO trades at a P/B of 5.29, and a P/S of 1110.94. This means that looking at the earnings, book values and sales basis, QNST 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 QNST is currently at a -11.42% to its one-year price target of 12.17. Looking at its rival pricing, ABEO is at a -33.55% relative to its price target of 29.72.
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), QNST is given a 2.00 while 1.80 placed for ABEO. This means that analysts are more bullish on the outlook for QNST 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 QNST is 3.53 while that of ABEO is just 9.43. This means that analysts are more bullish on the forecast for QNST stock.
The stock of Abeona Therapeutics Inc. defeats that of QuinStreet, Inc. when the two are compared, with ABEO taking 6 out of the total factors that were been considered. ABEO 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, ABEO is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for ABEO is better on when it is viewed on short interest.