ARGX vs. JNJ: A Head-to-Head Stock Comparison

Company Overview

JNJ’s market capitalization of 373.01 billion USD is significantly greater than ARGX’s 35.78 billion USD, highlighting its more substantial market valuation.

JNJ carries a higher beta at 0.41, indicating it’s more sensitive to market moves, while ARGX (beta: 0.04) exhibits greater stability.

ARGX trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, JNJ is a standard domestic listing.

Performance Comparison

This chart compares the performance of ARGX and JNJ over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of ARGX and JNJ. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• JNJ’s Forward PEG ratio of 2.70 is very high. This signifies that its current stock price is notably elevated compared to its anticipated earnings growth rate, possibly indicating that the market has already factored in, or even exceeded, realistic future performance expectations.

Dividend Comparison

ARGX currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while JNJ provides a 3.24% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

This section evaluates the financial strength of ARGX and JNJ. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• ARGX’s Interest Coverage Ratio (ICR) of -20.85 is negative. This implies its operating earnings are insufficient to meet its interest expenses, a serious situation that threatens its financial stability and capacity to honor debt commitments.