The shares of Coeur Mining, Inc. have decreased by more than -13.73% this year alone. The shares recently went up by 2.37% or $0.15 and now trades at $6.47. The shares of Cloudera, Inc. (NYSE:CLDR), has slumped by -15.07% year to date as of 08/09/2018. The shares currently trade at $14.03 and have been able to report a change of 0.65% over the past one week.
The stock of Coeur Mining, Inc. and Cloudera, Inc. were two of the most active stocks on Thursday. 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. CDE has an EBITDA margin of 25.59%, this implies that the underlying business of CDE is more profitable. The ROI of CDE is 1.90% while that of CLDR is -80.50%. These figures suggest that CDE ventures generate a higher ROI than that of CLDR.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, CDE’s free cash flow per share is a negative -0.01, while that of CLDR is positive 0.01.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 CDE is 2.20 and that of CLDR is 1.80. This implies that it is easier for CDE to cover its immediate obligations over the next 12 months than CLDR. The debt ratio of CDE is 0.51 compared to 0.00 for CLDR. CDE can be able to settle its long-term debts and thus is a lower financial risk than CLDR.Valuation
CDE currently trades at a forward P/E of 21.93, a P/B of 1.46, and a P/S of 1.79 while CLDR trades at a P/B of 6.88, and a P/S of 5.46. This means that looking at the earnings, book values and sales basis, CDE 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 CDE is currently at a -36.19% to its one-year price target of 10.14. Looking at its rival pricing, CLDR is at a -27.68% relative to its price target of 19.40.
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), CDE is given a 2.10 while 2.40 placed for CLDR. This means that analysts are more bullish on the outlook for CLDR 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 CDE is 2.27 while that of CLDR is just 4.55. This means that analysts are more bullish on the forecast for CDE stock.
The stock of Cloudera, Inc. defeats that of Coeur Mining, Inc. when the two are compared, with CLDR taking 6 out of the total factors that were been considered. CLDR 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, CLDR is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for CLDR is better on when it is viewed on short interest.