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 $59.2B against $20.3B — 2.9× the size. United Therapeutics Corporation trades at the lower P/E: 15.7× against 28.4×. 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 28.36 15.70 20.14
P/S 1.99 6.42 2.25
P/B 1.25 3.16 1.90
Price to free cash flow 8.03 18.62 16.54
EV/EBITDA 10.48 11.98 12.29
EV/Sales 2.91 5.67 2.56
Earnings yield 3.53% 6.37% (2.99%)
Free cash flow yield 12.46% 5.37% 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% —
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) 0.85

Dividend

Metric TAK UTHR Drug Manufacturers Specialty & Generic median
Dividend yield 4.52% — 1.70%
Payout ratio 0.50 0.00 0.00

Size

Metric TAK UTHR Drug Manufacturers Specialty & Generic median
Market cap 59.16b 20.25b 337.35m

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