By analyzing existing basic indicators between BeyondSpring and Precision, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Precision with a short position in BeyondSpring. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. One of the ways to look at asset utilization of BeyondSpring is to check how much profit was generated for every dollar of assets it reports. BeyondSpring shows a negative utilization of assets of -148.04 percent, losing $1.48 for each dollar of assets held by the firm. Inadequate asset utilization signifies that the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of BeyondSpring shows how discouraging it operates for each dollar spent on its assets.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as BeyondSpring or Surrozen is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is BeyondSpring's Liquidity
BeyondSpring
financial leverage refers to using borrowed capital as a funding source to finance BeyondSpring ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. BeyondSpring financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to BeyondSpring's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of BeyondSpring's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between BeyondSpring's total debt and its cash.
Correlation Between BeyondSpring and Surrozen
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding BeyondSpring together with similar or unrelated positions with a negative correlation. For example, you can also add Surrozen to your portfolio. If Surrozen is not perfectly correlated to BeyondSpring it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When BeyondSpring, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both BeyondSpring and Surrozen in your portfolio? Please note if you are using this as a pair-trade strategy between BeyondSpring and Surrozen, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between BYSI and SRZN for more information.
Another Deeper Perspective
Cash and Equivalents Breakdown
Lets now take a look at BeyondSpring cash and equivalents. In accordance with the recently published financial statements, BeyondSpring has 24.92
M in Cash and Equivalents. This is 96.96% lower than that of the Healthcare sector and 94.43% lower than that of the
Biotechnology industry. The cash and equivalents for all United States stocks is 99.08% higher than that of BeyondSpring. As for Precision BioSciences we see cash and equivalents of 126.89
M, which is 71.62% lower than that of the Biotechnology
| BYSI | 24.92 Million | 4.16 |
| Sector | 447.12 Million | 74.65 |
| DTIL | 126.89 Million | 21.19 |
Will BeyondSpring continue to go bananas?
BeyondSpring current potential upside boosts over 7.45. BeyondSpring exhibits very low volatility with skewness of -0.35 and kurtosis of 2.18. However, we advise investors to further study BeyondSpring technical indicators to make sure all market info is available and is reliable.
Our Conclusion on BeyondSpring
While many other companies in the biotechnology industry are either recovering or due for a correction, BeyondSpring may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current BeyondSpring valuation and our trade advice on BeyondSpring is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to BeyondSpring.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of BeyondSpring. Please refer to our
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