Seek Returns logo

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

Updated on

Here’s a clear look at ARGX and TAK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Both ARGX and TAK are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.

SymbolARGXTAK
Company Nameargenx SETakeda Pharmaceutical Company Limited
CountryNetherlandsJapan
GICS SectorHealth CareHealth Care
GICS IndustryBiotechnologyPharmaceuticals
Market Capitalization49.19 billion USD45.23 billion USD
ExchangeNasdaqGSNYSE
Listing DateMay 18, 2017January 5, 2010
Security TypeADRADR

Historical Performance

This chart compares the performance of ARGX and TAK by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ARGX vs. TAK: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARGXTAK
5-Day Price Return2.66%1.37%
13-Week Price Return46.02%-1.89%
26-Week Price Return30.48%-3.39%
52-Week Price Return39.71%5.51%
Month-to-Date Return10.01%0.95%
Year-to-Date Return13.17%4.19%
10-Day Avg. Volume0.09M5.10M
3-Month Avg. Volume0.10M4.35M
3-Month Volatility38.39%19.26%
Beta0.950.43

Profitability

Return on Equity (TTM)

ARGX

17.59%

Biotechnology Industry

Max
97.92%
Q3
11.99%
Median
-19.30%
Q1
-51.29%
Min
-132.03%

In the upper quartile for the Biotechnology industry, ARGX’s Return on Equity of 17.59% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

TAK

1.95%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.85%
Q1
5.40%
Min
-10.91%

TAK’s Return on Equity of 1.95% is in the lower quartile for the Pharmaceuticals industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ARGX vs. TAK: A comparison of their Return on Equity (TTM) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Net Profit Margin (TTM)

ARGX

-23.60%

Biotechnology Industry

Max
73.34%
Q3
18.98%
Median
-12.96%
Q1
-105.72%
Min
-259.82%

ARGX has a negative Net Profit Margin of -23.60%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

TAK

3.06%

Pharmaceuticals Industry

Max
40.67%
Q3
19.07%
Median
12.31%
Q1
4.50%
Min
-9.91%

Falling into the lower quartile for the Pharmaceuticals industry, TAK’s Net Profit Margin of 3.06% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

ARGX vs. TAK: A comparison of their Net Profit Margin (TTM) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Operating Profit Margin (TTM)

ARGX

-40.34%

Biotechnology Industry

Max
78.85%
Q3
21.90%
Median
-13.30%
Q1
-109.94%
Min
-278.10%

ARGX has a negative Operating Profit Margin of -40.34%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

TAK

8.05%

Pharmaceuticals Industry

Max
45.78%
Q3
23.14%
Median
16.68%
Q1
7.98%
Min
-7.13%

TAK’s Operating Profit Margin of 8.05% is around the midpoint for the Pharmaceuticals industry, indicating that its efficiency in managing core business operations is typical for the sector.

ARGX vs. TAK: A comparison of their Operating Profit Margin (TTM) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Profitability at a Glance

SymbolARGXTAK
Return on Equity (TTM)17.59%1.95%
Return on Assets (TTM)15.24%0.95%
Net Profit Margin (TTM)-23.60%3.06%
Operating Profit Margin (TTM)-40.34%8.05%
Gross Profit Margin (TTM)90.83%64.78%

Financial Strength

Current Ratio (MRQ)

ARGX

5.60

Biotechnology Industry

Max
16.97
Q3
8.39
Median
4.11
Q1
2.64
Min
0.74

ARGX’s Current Ratio of 5.60 aligns with the median group of the Biotechnology industry, indicating that its short-term liquidity is in line with its sector peers.

TAK

1.16

Pharmaceuticals Industry

Max
4.65
Q3
2.64
Median
1.85
Q1
1.26
Min
0.78

TAK’s Current Ratio of 1.16 falls into the lower quartile for the Pharmaceuticals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ARGX vs. TAK: A comparison of their Current Ratio (MRQ) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ARGX

0.01

Biotechnology Industry

Max
1.92
Q3
0.79
Median
0.12
Q1
0.00
Min
0.00

ARGX’s Debt-to-Equity Ratio of 0.01 is typical for the Biotechnology industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

TAK

0.66

Pharmaceuticals Industry

Max
1.75
Q3
0.82
Median
0.35
Q1
0.13
Min
0.00

TAK’s Debt-to-Equity Ratio of 0.66 is typical for the Pharmaceuticals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARGX vs. TAK: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Interest Coverage Ratio (TTM)

ARGX

-81.88

Biotechnology Industry

Max
72.37
Q3
1.03
Median
-9.59
Q1
-65.05
Min
-163.11

ARGX has a negative Interest Coverage Ratio of -81.88. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

TAK

1.96

Pharmaceuticals Industry

Max
103.95
Q3
43.60
Median
9.83
Q1
2.37
Min
-42.71

In the lower quartile for the Pharmaceuticals industry, TAK’s Interest Coverage Ratio of 1.96 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

ARGX vs. TAK: A comparison of their Interest Coverage Ratio (TTM) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Financial Strength at a Glance

SymbolARGXTAK
Current Ratio (MRQ)5.601.16
Quick Ratio (MRQ)4.920.59
Debt-to-Equity Ratio (MRQ)0.010.66
Interest Coverage Ratio (TTM)-81.881.96

Growth

Revenue Growth

ARGX vs. TAK: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ARGX vs. TAK: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ARGX

0.00%

Biotechnology Industry

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ARGX currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

TAK

4.48%

Pharmaceuticals Industry

Max
7.14%
Q3
3.45%
Median
2.17%
Q1
0.33%
Min
0.00%

With a Dividend Yield of 4.48%, TAK offers a more attractive income stream than most of its peers in the Pharmaceuticals industry, signaling a strong commitment to shareholder returns.

ARGX vs. TAK: A comparison of their Dividend Yield (TTM) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Dividend Payout Ratio (TTM)

ARGX

0.00%

Biotechnology Industry

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ARGX has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

TAK

124.94%

Pharmaceuticals Industry

Max
199.58%
Q3
97.17%
Median
53.47%
Q1
22.97%
Min
0.00%

TAK’s Dividend Payout Ratio of 124.94% is in the upper quartile for the Pharmaceuticals industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ARGX vs. TAK: A comparison of their Dividend Payout Ratio (TTM) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Dividend at a Glance

SymbolARGXTAK
Dividend Yield (TTM)0.00%4.48%
Dividend Payout Ratio (TTM)0.00%124.94%

Valuation

Price-to-Earnings Ratio (TTM)

ARGX

37.96

Biotechnology Industry

Max
40.44
Q3
39.37
Median
22.12
Q1
15.76
Min
3.48

ARGX’s P/E Ratio of 37.96 is within the middle range for the Biotechnology industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

TAK

50.48

Pharmaceuticals Industry

Max
45.19
Q3
27.91
Median
20.59
Q1
15.08
Min
3.79

At 50.48, TAK’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Pharmaceuticals industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ARGX vs. TAK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Price-to-Sales Ratio (TTM)

ARGX

29.31

Biotechnology Industry

Max
92.67
Q3
41.36
Median
8.45
Q1
4.46
Min
0.97

ARGX’s P/S Ratio of 29.31 aligns with the market consensus for the Biotechnology industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

TAK

1.54

Pharmaceuticals Industry

Max
8.87
Q3
4.56
Median
2.14
Q1
1.58
Min
0.11

In the lower quartile for the Pharmaceuticals industry, TAK’s P/S Ratio of 1.54 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

ARGX vs. TAK: A comparison of their Price-to-Sales Ratio (TTM) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Price-to-Book Ratio (MRQ)

ARGX

5.47

Biotechnology Industry

Max
22.72
Q3
10.68
Median
4.55
Q1
2.44
Min
0.59

ARGX’s P/B Ratio of 5.47 is within the conventional range for the Biotechnology industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

TAK

1.03

Pharmaceuticals Industry

Max
9.78
Q3
4.99
Median
2.48
Q1
1.53
Min
0.59

TAK’s P/B Ratio of 1.03 is in the lower quartile for the Pharmaceuticals industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

ARGX vs. TAK: A comparison of their Price-to-Book Ratio (MRQ) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Valuation at a Glance

SymbolARGXTAK
Price-to-Earnings Ratio (TTM)37.9650.48
Price-to-Sales Ratio (TTM)29.311.54
Price-to-Book Ratio (MRQ)5.471.03
Price-to-Free Cash Flow Ratio (TTM)--8.45