Stock Market LogicHere's an interesting comparative analysis of two publicly traded companies in Canada. My numbers are from TD Webbroker. Take Transgaming TNG to start. Market Cap is $13.3M with a revenue of $10.2M and 116.0M shares outstanding. The Beta is 0.53 with a $0.02 EPS. The Book Value is $0.02, P/E is 5.0x, Price/Sales (TTM) is 1.3, P/Cash Flow (TTM) is 3.7x and Operating Profit 7.13%.
Now take a look at ProMetic Life PLI out of Quebec. Market Cap is $678.3M with revenue of $21.9M and 529.9M shares outstanding. The Beta is 2.82 with an EPS of $-0.04, Book Value is $0.04. Price to Sales(TTM) is 30.9 and Operating Margin is -66.15%.
ProMetic Life has twice the revenue of Transgaming, yet 5 times the market cap, and of course the number of shares outstanding.
The difference in value seems to depend on market perception. Interesting!
GLTA