WallStSmart

HUTCHMED DRC (HCM)vsViatris Inc (VTRS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Viatris Inc generates 2584% more annual revenue ($14.74B vs $549.12M). HCM leads profitability with a 3.3% profit margin vs -2.8%. VTRS earns a higher WallStSmart Score of 48/100 (D+).

HCM

Avoid

28

out of 100

Grade: F

Growth: 4.0Profit: 5.0Value: 5.7Quality: 8.0
Piotroski: 3/9Altman Z: 2.26

VTRS

Hold

48

out of 100

Grade: D+

Growth: 2.7Profit: 3.5Value: 4.3Quality: 5.0
Piotroski: 4/9Altman Z: 0.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HCMUndervalued (+41.7%)

Margin of Safety

+41.7%

Fair Value

$25.92

Current Price

$12.82

$13.10 discount

UndervaluedFair: $25.92Overvalued
VTRSSignificantly Overvalued (-85.0%)

Margin of Safety

-85.0%

Fair Value

$8.72

Current Price

$16.51

$7.79 premium

UndervaluedFair: $8.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HCM3 strengths · Avg: 9.3/10
Return on EquityProfitability
37.7%10/10

Every $100 of equity generates 38 in profit

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

VTRS1 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Areas to Watch

HCM4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.2%4/10

0.2% revenue growth

Profit MarginProfitability
3.3%3/10

3.3% margin — thin

Operating MarginProfitability
0.3%3/10

Operating margin of 0.3%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

VTRS4 concerns · Avg: 2.5/10
Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Return on EquityProfitability
-2.9%2/10

ROE of -2.9% — below average capital efficiency

EPS GrowthGrowth
-70.6%2/10

Earnings declined 70.6%

Altman Z-ScoreHealth
0.552/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : HCM

The strongest argument for HCM centers on Return on Equity, Debt/Equity, Price/Book.

Bull Case : VTRS

The strongest argument for VTRS centers on Price/Book. PEG of 1.05 suggests the stock is reasonably priced for its growth.

Bear Case : HCM

The primary concerns for HCM are Revenue Growth, Profit Margin, Operating Margin. A P/E of 135.7x leaves little room for execution misses. Thin 3.3% margins leave little buffer for downturns.

Bear Case : VTRS

The primary concerns for VTRS are Revenue Growth, Return on Equity, EPS Growth.

Key Dynamics to Monitor

HCM profiles as a value stock while VTRS is a turnaround play — different risk/reward profiles.

VTRS carries more volatility with a beta of 0.88 — expect wider price swings.

VTRS is growing revenue faster at 4.9% — sustainability is the question.

VTRS generates stronger free cash flow (329M), providing more financial flexibility.

Bottom Line

VTRS scores higher overall (48/100 vs 28/100). HCM offers better value entry with a 41.7% margin of safety. Both earn "Hold" and "Avoid" 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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Viatris Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Viatris Inc. is an American global healthcare company headquartered in Canonsburg, Pennsylvania.

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