Elanco Animal Health Incorporated (ELAN) vs Takeda Pharmaceutical Co. (TAK)

Elanco Animal Health Incorporated and Takeda Pharmaceutical Co. are both Drug Manufacturers Specialty & Generic companies. Takeda Pharmaceutical Co. is the larger, with a market value of $61.9B against $11.8B — 5.3× the size. Elanco Animal Health Incorporated has negative trailing earnings, so its P/E is not meaningful; Takeda Pharmaceutical Co. trades at 29.6×. Elanco Animal Health Incorporated grew revenue faster over the last twelve months: 12.0% against 0.66%. Takeda Pharmaceutical Co. has the higher net margin (7.12% vs −3.96%) and the higher return on invested capital (2.88% vs 0.51%). Across the 20 metrics below, Takeda Pharmaceutical Co. leads on 14 and Elanco Animal Health Incorporated on 6.

Valuation

Metric ELAN TAK Drug Manufacturers Specialty & Generic median
P/E n/m 29.60 19.25
P/S 2.34 2.07 2.11
P/B 1.79 1.31 1.78
Price to free cash flow 32.95 8.38 16.14
EV/EBITDA 19.58 10.79 12.58
EV/Sales 3.02 3.00 2.73
Earnings yield (1.74%) 3.38% (4.38%)
Free cash flow yield 3.03% 11.94% 0.00%

Profitability

Metric ELAN TAK Drug Manufacturers Specialty & Generic median
Gross margin 55.36% 65.85% 53.94%
Operating margin 1.61% 11.61% 0.00%
Net margin (3.96%) 7.12% 0.00%
Free cash flow margin 7.55% 24.74% 0.00%
Return on equity (2.98%) 4.42% (0.40%)
Return on assets (1.46%) 2.15% (3.32%)
Return on invested capital 0.51% 2.88% 0.00%

Growth

Metric ELAN TAK Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 11.95% 0.66% 10.01%
EPS growth (last fiscal year) (169.12%) (244.86%) 49.06%
Revenue growth, 5-year CAGR 7.59% (0.21%) 6.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ELAN TAK Drug Manufacturers Specialty & Generic median
Debt to equity 0.59 0.65 0.05
Current ratio 2.05 1.14 2.31
Net debt to EBITDA 5.00 5.84 0.97

Dividend

Metric ELAN TAK Drug Manufacturers Specialty & Generic median
Dividend yield — 1.57% 1.57%
Payout ratio — 0.46 0.27

Size

Metric ELAN TAK Drug Manufacturers Specialty & Generic median
Market cap 11.76b 61.90b 276.90m

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