Takeda Pharmaceutical Co. (TAK) vs Teva Pharmaceutical Industries Ltd. (TEVA)

Takeda Pharmaceutical Co. and Teva Pharmaceutical Industries Ltd. are both Drug Manufacturers Specialty & Generic companies. Takeda Pharmaceutical Co. is the larger, with a market value of $67.7B against $48.7B — 1.4× the size. Takeda Pharmaceutical Co. trades at the lower P/E: 32.0× against 92.6×. Teva Pharmaceutical Industries Ltd. grew revenue faster over the last twelve months: 2.71% against 0.66%. Takeda Pharmaceutical Co. has the higher net margin (7.12% vs 2.94%) and the lower return on invested capital (0.00% vs 4.09%). Across the 21 metrics below, Takeda Pharmaceutical Co. leads on 13 and Teva Pharmaceutical Industries Ltd. on 8.

Valuation

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
P/E 31.97 92.59 20.55
P/S 2.24 2.82 2.08
P/B 1.44 6.09 1.79
Price to free cash flow 8.42 36.64 16.29
EV/EBITDA 11.17 26.25 12.22
EV/Sales 3.10 3.56 2.87
Earnings yield 3.13% 1.08% (15.94%)
Free cash flow yield 11.88% 2.73% 0.00%

Profitability

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
Gross margin 65.85% 53.51% 53.51%
Operating margin 11.61% 7.84% 0.00%
Net margin 7.12% 2.94% (2.45%)
Free cash flow margin 0.00% 7.71% 0.00%
Return on equity 0.00% 6.65% (0.80%)
Return on assets 0.00% 1.27% (1.67%)
Return on invested capital 0.00% 4.09% 0.00%

Growth

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 0.66% 2.71% 5.22%
EPS growth (last fiscal year) (244.86%) 183.45% 42.91%
Revenue growth, 5-year CAGR (0.21%) 0.71% 7.24%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
Debt to equity 0.62 2.09 0.04
Current ratio 1.15 0.95 2.41
Net debt to EBITDA 5.84 4.19 1.01

Dividend

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
Dividend yield 1.45% — 1.45%
Payout ratio 0.46 — 0.27

Size

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
Market cap 67.70b 48.69b 315.39m

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