Takeda Pharmaceutical Co. (TAK) vs United Therapeutics Corporation (UTHR)

Takeda Pharmaceutical Co. and United Therapeutics Corporation are both Drug Manufacturers Specialty & Generic companies. Takeda Pharmaceutical Co. is the larger, with a market value of $61.9B against $23.2B — 2.7× the size. United Therapeutics Corporation trades at the lower P/E: 17.6× against 29.6×. United Therapeutics Corporation grew revenue faster over the last twelve months: 2.49% against 0.66%. United Therapeutics Corporation has the higher net margin (41.6% vs 7.12%) and the higher return on invested capital (23.4% vs 2.88%). Across the 22 metrics below, United Therapeutics Corporation leads on 16 and Takeda Pharmaceutical Co. on 6.

Valuation

Metric TAK UTHR Drug Manufacturers Specialty & Generic median
P/E 29.60 17.61 19.25
P/S 2.07 7.20 2.11
P/B 1.31 3.55 1.78
Price to free cash flow 8.38 20.88 16.14
EV/EBITDA 10.79 13.63 12.58
EV/Sales 3.00 6.45 2.73
Earnings yield 3.38% 5.68% (4.38%)
Free cash flow yield 11.94% 4.79% 0.00%

Profitability

Metric TAK UTHR Drug Manufacturers Specialty & Generic median
Gross margin 65.85% 86.14% 53.94%
Operating margin 11.61% 44.44% 0.00%
Net margin 7.12% 41.56% 0.00%
Free cash flow margin 24.74% 34.65% 0.00%
Return on equity 4.42% 19.32% (0.40%)
Return on assets 2.15% 17.33% (3.32%)
Return on invested capital 2.88% 23.44% 0.00%

Growth

Metric TAK UTHR Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 0.66% 2.49% 10.01%
EPS growth (last fiscal year) (244.86%) 13.07% 49.06%
Revenue growth, 5-year CAGR (0.21%) 16.50% 6.74%
Net income growth, 5-year CAGR 0.00% 20.99% 0.00%

Health

Metric TAK UTHR Drug Manufacturers Specialty & Generic median
Debt to equity 0.65 0.00 0.05
Current ratio 1.14 5.73 2.31
Net debt to EBITDA 5.84 (1.85) 0.97

Dividend

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

Size

Metric TAK UTHR Drug Manufacturers Specialty & Generic median
Market cap 61.90b 23.23b 276.90m

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