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 $61.9B against $47.9B — 1.3× the size. Takeda Pharmaceutical Co. trades at the lower P/E: 29.6× against 65.9×. Teva Pharmaceutical Industries Ltd. grew revenue faster over the last twelve months: 4.13% against 0.66%. Takeda Pharmaceutical Co. has the higher net margin (7.12% vs 4.08%) and the lower return on invested capital (2.88% vs 4.58%). Across the 21 metrics below, Takeda Pharmaceutical Co. leads on 15 and Teva Pharmaceutical Industries Ltd. on 6.

Valuation

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
P/E 29.60 65.90 19.25
P/S 2.07 2.79 2.11
P/B 1.31 6.24 1.78
Price to free cash flow 8.38 34.53 16.14
EV/EBITDA 10.79 24.46 12.58
EV/Sales 3.00 3.54 2.73
Earnings yield 3.38% 1.52% (4.38%)
Free cash flow yield 11.94% 2.90% 0.00%

Profitability

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
Gross margin 65.85% 52.46% 53.94%
Operating margin 11.61% 8.77% 0.00%
Net margin 7.12% 4.08% 0.00%
Free cash flow margin 24.74% 8.09% 0.00%
Return on equity 4.42% 9.69% (0.40%)
Return on assets 2.15% 1.77% (3.32%)
Return on invested capital 2.88% 4.58% 0.00%

Growth

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 0.66% 4.13% 10.01%
EPS growth (last fiscal year) (244.86%) 183.45% 49.06%
Revenue growth, 5-year CAGR (0.21%) 0.71% 6.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
Debt to equity 0.65 2.14 0.05
Current ratio 1.14 0.88 2.31
Net debt to EBITDA 5.84 4.19 0.97

Dividend

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

Size

Metric TAK TEVA Drug Manufacturers Specialty & Generic median
Market cap 61.90b 47.91b 276.90m

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