WallStSmart

HUTCHMED DRC (HCM)vsTakeda Pharmaceutical Co Ltd ADR (TAK)

VS

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

Avoid

28

out of 100

Grade: F

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

TAK

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: 1.20
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

Intrinsic value data unavailable for TAK.

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

TAK4 strengths · Avg: 9.8/10
PEG RatioValuation
0.4310/10

Growing faster than its price suggests

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$73.81B10/10

Generating 73.8B in free cash flow

Market CapQuality
$58.92B9/10

Large-cap with strong market position

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

TAK4 concerns · Avg: 2.0/10
Return on EquityProfitability
2.4%3/10

ROE of 2.4% — below average capital efficiency

EPS GrowthGrowth
-9.8%2/10

Earnings declined 9.8%

Altman Z-ScoreHealth
1.202/10

Distress zone — elevated risk

Profit MarginProfitability
-3.5%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull 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.

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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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