By analyzing existing basic indicators between Eargo and Bio-Rad, 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 Bio-Rad with a short position in Eargo. 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 Eargo is to check how much profit was generated for every dollar of assets it reports. Eargo Inc shows a negative utilization of assets of -25.17 percent, losing $0.25 for each dollar of assets held by the firm. Inadequate asset utilization denotes the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Eargo Inc 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 Eargo, or Neuropace is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Eargo,'s Liquidity
Eargo,
financial leverage refers to using borrowed capital as a funding source to finance Eargo, Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Eargo, 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 Eargo,'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 Eargo,'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 Eargo,'s total debt and its cash.
Correlation Between Eargo, and Neuropace
In general, Delisted 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 Eargo, together with similar or unrelated positions with a negative correlation. For example, you can also add Neuropace to your portfolio. If Neuropace is not perfectly correlated to Eargo, 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 Eargo,, 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 Eargo, and Neuropace in your portfolio? Please note if you are using this as a pair-trade strategy between Eargo, and Neuropace, 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 EAR and NPCE for more information.
Breaking down Eargo, Indicators
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Eargo revenue. Based on the latest financial disclosure, Eargo Inc reported 85.5
M of revenue. This is 98.88% lower than that of the Healthcare sector and 96.65% lower than that of the
Medical Devices industry. The revenue for all United States stocks is 99.09% higher than that of Eargo. As for Bio-Rad Laboratories we see revenue of 2.9
B, which is 13.69% higher than that of the Medical Devices
| EAR | 85.5 Million | 1.54 |
| Sector | 2.55 Billion | 46.07 |
| BIO | 2.9 Billion | 52.38 |
Does Eargo have cash to continue?
The jensen alpha is down to -1.46 as of today. Eargo Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Eargo Inc independently to ensure intended market timing strategies are aligned with expectations about Eargo volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Eargo's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Eargo's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Eargo Implied Volatility
Eargo's implied volatility exposes the market's sentiment of Eargo Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Eargo's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Eargo stock will not fluctuate a lot when Eargo's options are near their expiration.
While some companies in the medical devices industry are either recovering or due for a correction, Eargo may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Eargo as the current risk-reward utility is not appealing enough. 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 Eargo.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Eargo, Inc. Please refer to our
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