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 $67.7B against $21.8B — 3.1× the size. Viatris Inc. has negative trailing earnings, so its P/E is not meaningful; Takeda Pharmaceutical Co. trades at 32.0×. Viatris Inc. grew revenue faster over the last twelve months: 4.27% against 0.66%. Takeda Pharmaceutical Co. has the higher net margin (7.12% vs −4.13%) and the higher return on invested capital (0.00% vs −0.02%). Both pay a dividend; Viatris Inc. yields more (2.54% vs 1.45%). Across the 21 metrics below, Takeda Pharmaceutical Co. leads on 12 and Viatris Inc. on 9.

Valuation

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
P/E 31.97 n/m 20.55
P/S 2.24 1.49 2.08
P/B 1.44 1.61 1.79
Price to free cash flow 8.42 10.69 16.29
EV/EBITDA 11.17 12.34 12.22
EV/Sales 3.10 2.28 2.87
Earnings yield 3.13% (2.81%) (15.94%)
Free cash flow yield 11.88% 9.35% 0.00%

Profitability

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
Gross margin 65.85% 35.31% 53.51%
Operating margin 11.61% (0.03%) 0.00%
Net margin 7.12% (4.13%) (2.45%)
Free cash flow margin 0.00% 16.27% 0.00%
Return on equity 0.00% (4.21%) (0.80%)
Return on assets 0.00% (1.67%) (1.67%)
Return on invested capital 0.00% (0.02%) 0.00%

Growth

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 0.66% 4.27% 5.22%
EPS growth (last fiscal year) (244.86%) (466.04%) 42.91%
Revenue growth, 5-year CAGR (0.21%) 3.66% 7.24%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
Debt to equity 0.62 0.13 0.04
Current ratio 1.15 1.55 2.41
Net debt to EBITDA 5.84 4.92 1.01

Dividend

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
Dividend yield 1.45% 2.54% 1.45%
Payout ratio 0.46 — 0.27

Size

Metric TAK VTRS Drug Manufacturers Specialty & Generic median
Market cap 67.70b 21.79b 315.39m

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