argenx (NASDAQ:ARGX) and Genfit (NASDAQ:GNFT) Critical Contrast

Genfit (NASDAQ:GNFT) and argenx (NASDAQ:ARGX) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Insider and Institutional Ownership

2.2% of Genfit shares are held by institutional investors. Comparatively, 60.3% of argenx shares are held by institutional investors. 4.2% of Genfit shares are held by insiders. Comparatively, 2.4% of argenx shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Genfit and argenx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genfit	N/A	N/A	N/A
argenx	-2.11%	-1.45%	-1.29%

Volatility & Risk

Genfit has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, argenx has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Valuation & Earnings

This table compares Genfit and argenx”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genfit	$41.31 million	5.15	-$31.27 million	N/A	N/A
argenx	$1.27 billion	27.08	-$295.05 million	($0.88)	-652.89

Genfit has higher earnings, but lower revenue than argenx.

Analyst Ratings

This is a summary of recent recommendations for Genfit and argenx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genfit	0	0	1	0	3.00
argenx	0	3	19	1	2.91

Genfit currently has a consensus price target of $13.00, indicating a potential upside of 204.96%. argenx has a consensus price target of $619.79, indicating a potential upside of 7.88%. Given Genfit’s stronger consensus rating and higher probable upside, equities analysts plainly believe Genfit is more favorable than argenx.

Summary

Genfit beats argenx on 8 of the 13 factors compared between the two stocks.

About Genfit

Genfit S.A., a late-stage biopharmaceutical company, discovers and develops drug candidates and diagnostic solutions for metabolic and liver-related diseases. The company develops Elafibranor, which is in Phase III clinical trial to treat patients with primary biliary cholangitis. It also engages in the development of NIS4 technology for the diagnosis of nonalcoholic steatohepatitis (NASH) and fibrosis; VS-01 for the treatment of Urea Cycle Disorder (UCD) and Organic Acidemia Disorder (OAD); GNS561, which is in Phase 1b/2a trial to treat patients with cholangiocarcinoma (CCA); VS-01-ACLF and Nitazoxanide (NTZ), which is in Phase 1 trial to treat acute-on-chronic liver failure, as well as VS-02-HE, which is in preclinical trial for the treatment of Reduction of Hyperammonemia and the Stabilization of Blood Ammonia; CML-022; SRT-015, an ASK1 inhibitor targets the inhibition of cellular apoptosis, inflammation, and fibrosis. The company has a licensing agreement with Labcorp for the commercialization of NASHnext, a blood-based molecular diagnostic test; and Genoscience Pharma to develop and commercialize the investigational treatment GNS561 for CCA. The company was incorporated in 1999 and is headquartered in Loos, France.

About argenx

argenx SE, a biotechnology company, engages in the developing of various therapies for the treatment of autoimmune diseases in the United States, Japan, Europe, Middle East, Africa, and China. Its lead product candidate is efgartigimod for the treatment of patients with myasthenia gravis, immune thrombocytopenia, pemphigus vulgaris, generalized myasthenia gravis, chronic inflammatory demyelinating polyneuropathy, thyroid eye disease, bullous pemphigoid, myositis, primary sjögren’s syndrome, post-covid postural orthostatic tachycardia syndrome, membranous nephropathy, lupus nephropathy, anca-associated vasculitis, and antibody mediated rejection; ENHANZE SC; Empasiprubart for multifocal motor neuropath, delayed graft function, and dermatomyositis; and ARGX-119 for congenital myasthenic syndrome and amyotrophic lateral sclerosis. The company is developing ARGX-213 targets FcRn; ARGX-121 and ARGX-220 targets immune system; ARGX-109 targets IL-6; ARGX-118 for inflammation; and ARGX-109, as well as cusatuzumab, ARGX-112, ARGX-114, and ARGX-115. It owns VYVGART; VYVGART HYTRULO; VYVDURA; ARGENX; ABDEG; NHANCE; SIMPLE ANTIBODY; and ARGENXMEDHUB. The company has strategic partnership with AbbVie S.À.R.L., Zai Lab Limited, and LEO Pharma A/S; and collaboration and license agreement with Genor Biopharma Co. Ltd, Université Catholique de Louvain, Sopartec S.A., NYU Langone Health, Leiden University Medical Center, AgomAb Therapeutics NV, Broteio Pharma B.V., VIB vzw, University of Texas, BioWa, Inc., and Shire International GmbH. It has collaboration agreement with Genmab A/S to discover, develop, and commercialize novel therapeutic antibodies with applications in immunology and oncology, as well as a strategic collaboration with IQVIA Holdings Inc. to provide safety systems and services. argenx SE was incorporated in 2008 and is based in Amsterdam, the Netherlands.