By analyzing existing technical and fundamental indicators between Legend Biotech and Paylocity, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Paylocity with a short position in Legend Biotech. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
One of the ways to look at asset utilization of Legend is to check how much profit was generated for every dollar of assets it reports. Legend Biotech Corp secures a negative usage of assets of -27.65 %, losing $0.28 for each dollar of assets held by the firm. Inadequate asset utilization conveys that the company is being less effective with each dollar of assets it secures. Strictly speaking, asset utilization of Legend Biotech Corp shows how discouraging it operates for each dollar spent on its assets.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Legend or VaxcyteInc is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Legend BiotechCorp's Liquidity
Legend BiotechCorp
financial leverage refers to using borrowed capital as a funding source to finance Legend BiotechCorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Legend BiotechCorp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Legend BiotechCorp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Legend BiotechCorp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Legend BiotechCorp's total debt and its cash.
Correlation Between Legend and VaxcyteInc
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Legend BiotechCorp together with similar or unrelated positions with a negative correlation. For example, you can also add VaxcyteInc to your portfolio. If VaxcyteInc is not perfectly correlated to Legend BiotechCorp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Legend BiotechCorp, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Legend BiotechCorp and VaxcyteInc in your portfolio? Please note if you are using this as a pair-trade strategy between Legend BiotechCorp and VaxcyteInc, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between LEGN and PCVX for more information.
What is driving Legend BiotechCorp Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Legend Biotech revenue. Based on the latest financial disclosure, Legend Biotech Corp reported 118.59
M of revenue. This is 98.45% lower than that of the Healthcare sector and 84.04% lower than that of the
Biotechnology industry. The revenue for all United States stocks is 98.74% higher than that of Legend Biotech. As for Paylocity Holdings we see revenue of 791.16
M, which is 6.49% higher than that of the Biotechnology
| LEGN | 118.59 Million | 7.18 |
| Sector | 742.91 Million | 44.95 |
| PCTY | 791.16 Million | 47.87 |
Will Legend continue to rise?
Skewness just dropped to -0.54, may entail upcoming price decrease. Legend Biotech Corp exhibits very low volatility with skewness of -0.54 and kurtosis of 4.56. However, we advise investors to further study Legend Biotech Corp technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Legend Biotech's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Legend Biotech's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on Legend Biotech
Whereas some firms under the biotechnology industry are still a bit expensive, Legend Biotech may offer a potential longer-term growth to institutional investors. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Legend as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Legend Biotech.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Legend BiotechCorp. Please refer to our
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