VICI Properties Inc. (NYSE:VICI), on the other hand, is up 17.15% year to date as of 09/12/2019. It currently trades at $22.00 and has returned -0.86% during the past week.
Advaxis, Inc. (NASDAQ:ADXS) and VICI Properties Inc. (NYSE:VICI) are the two most active stocks in the Biotechnology industry based on today’s trading volumes. To determine if one is a better investment than the other, we will compare the two companies’ growth, profitability, risk, return, and valuation characteristics, as well as their analyst ratings and sentiment signals.
Companies that can increase earnings at a high compound rate over time are attractive to investors. Comparatively, VICI is expected to grow at a 5.60% annual rate. All else equal, VICI’s higher growth rate would imply a greater potential for capital appreciation.
A high growth rate isn’t necessarily valuable to investors. In fact, companies that overinvest in low return projects just to achieve a high growth rate can actually destroy shareholder value. Profitability and returns are a measure of the quality of a company’s business and its growth opportunities. We’ll use EBITDA margin and Return on Investment (ROI) to measure this. EBITDA margin of 71.92% for VICI Properties Inc. (VICI). ADXS’s ROI is -292.20% while VICI has a ROI of 6.70%. The interpretation is that VICI’s business generates a higher return on investment than ADXS’s.Cash Flow
The value of a stock is simply the present value of its future free cash flows. ADXS’s free cash flow (“FCF”) per share for the trailing twelve months was -1.34. Comparatively, VICI’s free cash flow per share was +0.06. On a percent-of-sales basis, ADXS’s free cash flow was -0.38% while VICI converted 0% of its revenues into cash flow. This means that, for a given level of sales, VICI is able to generate more free cash flow for investors.
Analysts look at liquidity and leverage ratios to assess how easily a company can cover its liabilities. ADXS has a current ratio of 7.10 compared to 6.00 for VICI. This means that ADXS can more easily cover its most immediate liabilities over the next twelve months. ADXS’s debt-to-equity ratio is 0.00 versus a D/E of 0.52 for VICI. VICI is therefore the more solvent of the two companies, and has lower financial risk.Valuation
ADXS trades at a P/B of 0.04, and a P/S of 0.22, compared to a forward P/E of 14.44, a P/B of 1.14, and a P/S of 11.29 for VICI. ADXS is the cheaper of the two stocks on an earnings, book value and sales basis. Given that earnings are what matter most to investors, analysts tend to place a greater weight on the P/E.
Analyst Price Targets and Opinions
Investors often compare a stock’s current price to an analyst price target to get a sense of the potential upside within the next year. ADXS is currently priced at a -96.89% to its one-year price target of 9.65. Comparatively, VICI is -15.93% relative to its price target of 26.17. This suggests that ADXS is the better investment over the next year.
Insider Activity and Investor Sentiment
Analysts often look at short interest, or the percentage of a company’s float currently being shorted by investors, to aid in their outlook for a particular stock. ADXS has a short ratio of 0.74 compared to a short interest of 10.72 for VICI. This implies that the market is currently less bearish on the outlook for ADXS.
VICI Properties Inc. (NYSE:VICI) beats Advaxis, Inc. (NASDAQ:ADXS) on a total of 7 of the 14 factors compared between the two stocks. VICI higher liquidity, is more profitable, generates a higher return on investment, has higher cash flow per share and has a higher cash conversion rate. In terms of valuation, ADXS is the cheaper of the two stocks on an earnings, book value and sales basis,