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

Company Overview

AZN’s market capitalization of 446.12 billion USD is substantially larger than SMMT’s 14.85 billion USD, indicating a significant difference in their market valuations.

AZN has a positive beta (0.18), indicating it generally moves with the broader market, whereas SMMT has a negative beta (-1.05), often moving inversely, which can offer diversification or hedging benefits.

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

Performance Comparison

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

• SMMT’s Price-to-Earnings (P/E) ratio of -61.71 is negative. This indicates the company is currently not generating profit, a key factor that can weigh on its stock valuation and investor sentiment.
• AZN’s Forward PEG ratio of 2.58 and SMMT’s Forward PEG ratio of 6.38 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. SMMT’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
• SMMT’s Price-to-Book (P/B) ratio of 43.15 is very high. This suggests that investors are valuing its assets and growth potential at a considerable premium to its stated book value, often due to strong return on equity, significant intangible assets, or optimistic growth forecasts.

Dividend Comparison

AZN provides a 1.35% dividend yield, potentially offering a blend of income and growth, whereas SMMT 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 SMMT. 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.
• SMMT’s Interest Coverage Ratio (ICR) of -30.27 is negative. This signals that its current operating earnings are insufficient to meet its interest obligations, a critical red flag for its financial health and capacity to manage its debt.