WallStSmart

Takeda Pharmaceutical Co Ltd ADR (TAK)vsUnited Therapeutics Corporation (UTHR)

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Smart Verdict

WallStSmart Research — data-driven comparison

Takeda Pharmaceutical Co Ltd ADR generates 140176% more annual revenue ($4.46T vs $3.18B). UTHR leads profitability with a 41.9% profit margin vs 2.5%. TAK appears more attractively valued with a PEG of 0.40. UTHR earns a higher WallStSmart Score of 67/100 (B-).

TAK

Buy

60

out of 100

Grade: C

Growth: 6.7Profit: 6.0Value: 4.7Quality: 5.0

UTHR

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 10.0Quality: 7.8
Piotroski: 5/9Altman Z: 7.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TAKSignificantly Overvalued (-77.5%)

Margin of Safety

-77.5%

Fair Value

$10.30

Current Price

$17.82

$7.52 premium

UndervaluedFair: $10.30Overvalued
UTHRUndervalued (+63.2%)

Margin of Safety

+63.2%

Fair Value

$1294.44

Current Price

$524.28

$770.16 discount

UndervaluedFair: $1294.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TAK6 strengths · Avg: 9.8/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Return on EquityProfitability
150.0%10/10

Every $100 of equity generates 150 in profit

EPS GrowthGrowth
330.2%10/10

Earnings expanding 330.2% YoY

Free Cash FlowQuality
$317.47B10/10

Generating 317.5B in free cash flow

Market CapQuality
$57.56B9/10

Large-cap with strong market position

UTHR4 strengths · Avg: 9.5/10
Profit MarginProfitability
41.9%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
45.0%10/10

Strong operational efficiency at 45.0%

Altman Z-ScoreHealth
7.3010/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
24.5%8/10

Earnings expanding 24.5% YoY

Areas to Watch

TAK3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

P/E RatioValuation
82.8x2/10

Premium valuation, high expectations priced in

UTHR1 concerns · Avg: 4.0/10
PEG RatioValuation
2.074/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : TAK

The strongest argument for TAK centers on PEG Ratio, Price/Book, Return on Equity. PEG of 0.40 suggests the stock is reasonably priced for its growth.

Bull Case : UTHR

The strongest argument for UTHR centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 41.9% and operating margin at 45.0%.

Bear Case : TAK

The primary concerns for TAK are Revenue Growth, Profit Margin, P/E Ratio. A P/E of 82.8x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.

Bear Case : UTHR

The primary concerns for UTHR are PEG Ratio.

Key Dynamics to Monitor

TAK profiles as a value stock while UTHR is a mature play — different risk/reward profiles.

UTHR carries more volatility with a beta of 0.86 — expect wider price swings.

UTHR is growing revenue faster at 7.4% — sustainability is the question.

TAK generates stronger free cash flow (317.5B), providing more financial flexibility.

Bottom Line

UTHR scores higher overall (67/100 vs 60/100), backed by strong 41.9% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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.

United Therapeutics Corporation

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

United Therapeutics Corporation, a biotechnology company, is dedicated to the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company is headquartered in Silver Spring, Maryland.

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