AZN vs. ISRG: A Head-to-Head Stock Comparison

Company Overview

AZN’s market capitalization of 448.63 billion USD is substantially larger than ISRG’s 200.02 billion USD, indicating a significant difference in their market valuations.

ISRG carries a higher beta at 1.68, indicating it’s more sensitive to market moves, while AZN (beta: 0.17) exhibits greater stability.

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

Performance Comparison

This chart compares the performance of AZN and ISRG 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 AZN and ISRG. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• AZN’s Price-to-Earnings (P/E) ratio of 57.72 and ISRG’s P/E ratio of 80.57 are both very high. For AZN, this elevated P/E suggests that significant expectations for future earnings growth are already built into its stock price, or it may be overvalued. ISRG’s very high P/E also implies its valuation is rich, possibly indicating market optimism about its prospects or a risk of being overstretched.
• AZN’s Forward PEG ratio of 5.21 and ISRG’s Forward PEG ratio of 5.11 are both considered very high. For AZN, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. ISRG’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
• AZN’s Price-to-Book (P/B) ratio of 10.93 and ISRG’s P/B ratio of 11.66 are both very high. For AZN, this typically means the market assigns a much greater value to the company than its net accounting worth, often due to factors like robust intangible assets or superior growth prospects. ISRG’s high P/B also suggests investors have high expectations for its future performance and are pricing it well above its book value.

Dividend Comparison

AZN provides a 2.13% dividend yield, potentially offering a blend of income and growth, whereas ISRG currently does not pay a dividend, possibly retaining profits to fund operations or growth initiatives.

Financial Strength Metrics Comparison

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

• AZN’s current ratio of 0.90 is considered low. This may signal potential challenges with its short-term liquidity, implying that its current assets might offer a limited buffer for meeting its immediate debts and could affect its capacity to smoothly manage upcoming financial duties.