The shares of Blonder Tongue Laboratories, Inc. have increased by more than 102.94% this year alone. The shares recently went up by 36.67% or $0.33 and now trades at $1.23. The shares of Ocean Power Technologies, Inc. (NASDAQ:OPTT), has jumped by 1.82% year to date as of 04/13/2018. The shares currently trade at $1.12 and have been able to report a change of 1.82% over the past one week.
The stock of Blonder Tongue Laboratories, Inc. and Ocean Power Technologies, 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. BDR has an EBITDA margin of 4.14%, this implies that the underlying business of BDR is more profitable. The ROI of BDR is 33.00% while that of OPTT is -203.50%. These figures suggest that BDR ventures generate a higher ROI than that of OPTT.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, BDR’s free cash flow per share is a positive 0, while that of OPTT is negative -0.24.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 BDR is 2.30 and that of OPTT is 5.10. This implies that it is easier for BDR to cover its immediate obligations over the next 12 months than OPTT. The debt ratio of BDR is 0.86 compared to 0.00 for OPTT. BDR can be able to settle its long-term debts and thus is a lower financial risk than OPTT.Valuation
BDR currently trades at a P/B of 1.40, and a P/S of 0.31 while OPTT trades at a P/B of 1.51, and a P/S of 43.21. This means that looking at the earnings, book values and sales basis, BDR 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. Looking at its rival pricing, OPTT is at a -81.33% relative to its price target of 6.00.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 BDR is 0.34 while that of OPTT is just 2.55. This means that analysts are more bullish on the forecast for BDR stock.
The stock of Ocean Power Technologies, Inc. defeats that of Blonder Tongue Laboratories, Inc. when the two are compared, with OPTT taking 2 out of the total factors that were been considered. OPTT 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, OPTT is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for OPTT is better on when it is viewed on short interest.