Takeda Pharmaceutical Co. (TAK) vs Viatris Inc. (VTRS)

Takeda Pharmaceutical Co. and Viatris Inc. are both Drug Manufacturers Specialty & Generic companies. Takeda Pharmaceutical Co. is the larger, with a market value of $59.2B against $20.0B — 3.0× the size. Viatris Inc. has negative trailing earnings, so its P/E is not meaningful; Takeda Pharmaceutical Co. trades at 28.4×. Viatris Inc. grew revenue faster over the last twelve months: 4.40% against 0.66%. Takeda Pharmaceutical Co. has the higher net margin (7.12% vs −2.79%) and the higher return on invested capital (2.88% vs −0.20%). Both pay a dividend; Takeda Pharmaceutical Co. yields more (4.52% vs 4.15%). Across the 21 metrics below, Takeda Pharmaceutical Co. leads on 15 and Viatris Inc. on 6.

Valuation

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
P/E 28.36 n/m 20.14
P/S 1.99 1.41 2.25
P/B 1.25 1.45 1.90
Price to free cash flow 8.03 10.97 16.54
EV/EBITDA 10.48 12.22 12.29
EV/Sales 2.91 2.25 2.56
Earnings yield 3.53% (2.02%) (2.99%)
Free cash flow yield 12.46% 9.11% 0.00%

Profitability

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
Gross margin 65.85% 34.83% 53.94%
Operating margin 11.61% (0.59%) 0.00%
Net margin 7.12% (2.79%) 0.00%
Free cash flow margin 24.74% 12.83% 0.00%
Return on equity 4.42% (2.75%) (0.40%)
Return on assets 2.15% (1.12%) (3.32%)
Return on invested capital 2.88% (0.20%) 0.00%

Growth

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 0.66% 4.40% 10.01%
EPS growth (last fiscal year) (244.86%) (466.04%) —
Revenue growth, 5-year CAGR (0.21%) 3.66% 6.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
Debt to equity 0.65 0.94 0.05
Current ratio 1.14 1.58 2.31
Net debt to EBITDA 5.84 4.92 0.85

Dividend

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
Dividend yield 4.52% 4.15% 1.70%
Payout ratio 0.50 0.31 0.00

Size

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
Market cap 59.16b 19.99b 337.35m

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