HUTCHMED DRC (HCM)vsTakeda Pharmaceutical Co Ltd ADR (TAK)
HCM
HUTCHMED DRC
$12.82
-2.29%
HEALTHCARE · Cap: $2.36B
TAK
Takeda Pharmaceutical Co Ltd ADR
$18.26
+0.83%
HEALTHCARE · Cap: $58.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Takeda Pharmaceutical Co Ltd ADR generates 841049% more annual revenue ($4.62T vs $549.12M). HCM leads profitability with a 3.3% profit margin vs -3.5%. TAK earns a higher WallStSmart Score of 53/100 (C-).
HCM
Avoid28
out of 100
Grade: F
TAK
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.7%
Fair Value
$25.92
Current Price
$12.82
$13.10 discount
Intrinsic value data unavailable for TAK.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 38 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Growing faster than its price suggests
Reasonable price relative to book value
Generating 73.8B in free cash flow
Large-cap with strong market position
Areas to Watch
0.2% revenue growth
3.3% margin — thin
Operating margin of 0.3%
Weak financial health signals
ROE of 2.4% — below average capital efficiency
Earnings declined 9.8%
Distress zone — elevated risk
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : HCM
The strongest argument for HCM centers on Return on Equity, Debt/Equity, Price/Book.
Bull Case : TAK
The strongest argument for TAK centers on PEG Ratio, Price/Book, Free Cash Flow. Revenue growth of 10.2% demonstrates continued momentum. PEG of 0.43 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 : TAK
The primary concerns for TAK are Return on Equity, EPS Growth, Altman Z-Score.
Key Dynamics to Monitor
HCM profiles as a value stock while TAK is a turnaround play — different risk/reward profiles.
HCM carries more volatility with a beta of 0.45 — expect wider price swings.
TAK is growing revenue faster at 10.2% — sustainability is the question.
TAK generates stronger free cash flow (73.8B), providing more financial flexibility.
Bottom Line
TAK scores higher overall (53/100 vs 28/100) and 10.2% revenue growth. HCM offers better value entry with a 41.7% margin of safety. Both earn "Buy" 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.
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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