Earnings

Financial Metrics You Should Care About: Platinum Group Metals Ltd. (PLG), Oragenics, Inc. (OGEN)

The shares of Platinum Group Metals Ltd. have decreased by more than -47.27% this year alone. The shares recently went up by 17.26% or $0.02 and now trades at $0.16. The shares of Oragenics, Inc. (NYSE:OGEN), has slumped by -82.07% year to date as of 09/13/2018. The shares currently trade at $0.42 and have been able to report a change of 0.26% over the past one week.

The stock of Platinum Group Metals Ltd. and Oragenics, 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. These figures suggest that PLG ventures generate a higher ROI than that of OGEN.

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 PLG is 5.40 and that of OGEN is 3.30. This implies that it is easier for PLG to cover its immediate obligations over the next 12 months than OGEN.

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 PLG is currently at a -97.7% to its one-year price target of 6.96. Looking at its rival pricing, OGEN is at a -79% relative to its price target of 2.00.

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), PLG is given a 2.00 while 1.00 placed for OGEN. This means that analysts are more bullish on the outlook for PLG 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 PLG is 3.21 while that of OGEN is just 1.59. This means that analysts are more bullish on the forecast for OGEN stock.




Conclusion

The stock of Platinum Group Metals Ltd. defeats that of Oragenics, Inc. when the two are compared, with PLG taking 4 out of the total factors that were been considered. PLG 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, PLG is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for PLG is better on when it is viewed on short interest.

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