Choosing Between Hot Stocks: Comstock Mining Inc. (LODE), Achillion Pharmaceuticals, Inc. (ACHN)

The shares of Comstock Mining Inc. have decreased by more than -50.00% this year alone. The shares of Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN), has jumped by 4.51% year to date as of 10/10/2018. The shares currently trade at $3.01 and have been able to report a change of -22.62% over the past one week.

The stock of Comstock Mining Inc. and Achillion Pharmaceuticals, Inc. were two of the most active stocks on Wednesday. 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 LODE ventures generate a higher ROI than that of ACHN.

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 LODE is 4.80 and that of ACHN is 35.90. This implies that it is easier for LODE to cover its immediate obligations over the next 12 months than ACHN. The debt ratio of LODE is 0.85 compared to 0.00 for ACHN. LODE can be able to settle its long-term debts and thus is a lower financial risk than ACHN.


LODE currently trades at a P/B of 0.97, and a P/S of 116.26 while ACHN trades at a P/B of 1.41, This means that looking at the earnings, book values and sales basis, LODE 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, ACHN is at a -48.98% relative to its price target of 5.90.

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), LODE is given a 2.00 while 2.00 placed for ACHN. This means that analysts are equally bullish on their outlook for the two stocks 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 LODE is 0.81 while that of ACHN is just 5.12. This means that analysts are more bullish on the forecast for LODE stock.


The stock of Achillion Pharmaceuticals, Inc. defeats that of Comstock Mining Inc. when the two are compared, with ACHN taking 4 out of the total factors that were been considered. ACHN 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, ACHN is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for ACHN is better on when it is viewed on short interest.

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