ASOS vs Galapagos Which Is More Reliable?

ASOS and Galapagos are two companies in the fashion and biotechnology industries, respectively, known for their innovative products and successful market presence. ASOS is a global online fashion retailer, offering a wide range of trendy clothing and accessories to customers worldwide. Galapagos, on the other hand, is a biotech company focused on developing novel therapies for various diseases. Both companies have seen significant growth in recent years, but their stocks have performed differently in the market, showcasing the unique challenges and opportunities in their respective industries.

ASOS or Galapagos?

When comparing ASOS and Galapagos, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ASOS and Galapagos.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ASOS has a dividend yield of -%, while Galapagos has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASOS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Galapagos reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ASOS P/E ratio at -1.94 and Galapagos's P/E ratio at 8.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASOS P/B ratio is 0.93 while Galapagos's P/B ratio is 0.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASOS has seen a 5-year revenue growth of 0.17%, while Galapagos's is -0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -43.49% and Galapagos's ROE at 7.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.00 for ASOS and $26.43 for Galapagos. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. Galapagos's prices fluctuated between $24.16 and $42.46, with a yearly change of 75.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.