HUTCHMED DRC (HCM)vsTakeda Pharmaceutical Co Ltd ADR (TAK)
HCM
HUTCHMED DRC
$14.15
+0.21%
HEALTHCARE · Cap: $2.52B
TAK
Takeda Pharmaceutical Co Ltd ADR
$18.29
+1.39%
HEALTHCARE · Cap: $56.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Takeda Pharmaceutical Co Ltd ADR generates 813844% more annual revenue ($4.46T vs $548.51M). HCM leads profitability with a 83.3% profit margin vs 2.5%. HCM trades at a lower P/E of 5.3x. TAK earns a higher WallStSmart Score of 60/100 (C).
HCM
Hold42
out of 100
Grade: D
TAK
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+16.1%
Fair Value
$18.02
Current Price
$14.15
$3.87 discount
Margin of Safety
-77.5%
Fair Value
$10.30
Current Price
$18.29
$7.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 45 in profit
Keeps 83 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
Generating 317.5B in free cash flow
Large-cap with strong market position
Areas to Watch
Trading at 9.8x book value
Weak financial health signals
Revenue declined 16.5%
Earnings declined 98.1%
4.2% revenue growth
3.3% earnings growth
ROE of 1.5% — below average capital efficiency
2.5% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : HCM
The strongest argument for HCM centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 83.3% and operating margin at -13.2%.
Bull Case : TAK
The strongest argument for TAK centers on PEG Ratio, Price/Book, Free Cash Flow. PEG of 0.39 suggests the stock is reasonably priced for its growth.
Bear Case : HCM
The primary concerns for HCM are Price/Book, Piotroski F-Score, Revenue Growth.
Bear Case : TAK
The primary concerns for TAK are Revenue Growth, EPS Growth, Return on Equity. A P/E of 82.0x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
HCM profiles as a declining stock while TAK is a value play — different risk/reward profiles.
HCM carries more volatility with a beta of 0.51 — expect wider price swings.
TAK is growing revenue faster at 4.2% — sustainability is the question.
TAK generates stronger free cash flow (317.5B), providing more financial flexibility.
Bottom Line
TAK scores higher overall (60/100 vs 42/100). HCM offers better value entry with a 16.1% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
HUTCHMED DRC
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
HUTCHMED (China) Limited discovers, develops and markets targeted immunotherapies and therapies for cancer and immune diseases globally. The company is headquartered in Central, Hong Kong.
Visit Website →Takeda Pharmaceutical Co Ltd ADR
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Takeda Pharmaceutical Company Limited is engaged in the research, development, manufacture and marketing of pharmaceuticals, over-the-counter drugs and quasi-drug consumer products, and other health care products. The company is headquartered in Tokyo, Japan.
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