WallStSmart

HUTCHMED DRC (HCM)vsTeva Pharma Industries Ltd ADR (TEVA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Teva Pharma Industries Ltd ADR generates 3063% more annual revenue ($17.35B vs $548.51M). HCM leads profitability with a 83.3% profit margin vs 9.0%. HCM trades at a lower P/E of 4.1x. TEVA earns a higher WallStSmart Score of 66/100 (B-).

HCM

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 6.0Value: 8.3Quality: 8.0
Piotroski: 3/9Altman Z: 2.26

TEVA

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.0Value: 6.3Quality: 4.0
Piotroski: 6/9Altman Z: 0.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HCMUndervalued (+44.0%)

Margin of Safety

+44.0%

Fair Value

$26.99

Current Price

$10.87

$16.12 discount

UndervaluedFair: $26.99Overvalued

Intrinsic value data unavailable for TEVA.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HCM5 strengths · Avg: 9.6/10
P/E RatioValuation
4.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
37.7%10/10

Every $100 of equity generates 38 in profit

Profit MarginProfitability
83.3%10/10

Keeps 83 of every $100 in revenue as profit

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

TEVA2 strengths · Avg: 9.0/10
EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% YoY

PEG RatioValuation
0.858/10

Growing faster than its price suggests

Areas to Watch

HCM4 concerns · Avg: 2.5/10
Market CapQuality
$1.88B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-16.5%2/10

Revenue declined 16.5%

EPS GrowthGrowth
-98.1%2/10

Earnings declined 98.1%

TEVA4 concerns · Avg: 3.0/10
P/E RatioValuation
25.8x4/10

Moderate valuation

Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Free Cash FlowQuality
$-208.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.282/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : TEVA

The strongest argument for TEVA centers on EPS Growth, PEG Ratio. PEG of 0.85 suggests the stock is reasonably priced for its growth.

Bear Case : HCM

The primary concerns for HCM are Market Cap, Piotroski F-Score, Revenue Growth.

Bear Case : TEVA

The primary concerns for TEVA are P/E Ratio, Revenue Growth, Free Cash Flow. Debt-to-equity of 2.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

HCM profiles as a declining stock while TEVA is a value play — different risk/reward profiles.

TEVA carries more volatility with a beta of 0.85 — expect wider price swings.

TEVA is growing revenue faster at 2.3% — sustainability is the question.

HCM generates stronger free cash flow (-79M), providing more financial flexibility.

Bottom Line

TEVA scores higher overall (66/100 vs 43/100). HCM offers better value entry with a 44.0% margin of safety. Both earn "Strong 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.

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Teva Pharma Industries Ltd ADR

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic drugs, specialty drugs, and biopharmaceuticals in North America, Europe, and internationally. The company is headquartered in Petach Tikva, Israel.

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