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 3046% more annual revenue ($17.26B vs $548.51M). HCM leads profitability with a 83.3% profit margin vs 8.2%. HCM trades at a lower P/E of 5.3x. TEVA earns a higher WallStSmart Score of 73/100 (B).

HCM

Hold

42

out of 100

Grade: D

Growth: 3.3Profit: 6.0Value: 7.7Quality: 6.5
Piotroski: 3/9Altman Z: 0.95

TEVA

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 10.0Quality: 4.8
Piotroski: 6/9Altman Z: 0.28
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HCMUndervalued (+16.1%)

Margin of Safety

+16.1%

Fair Value

$18.02

Current Price

$14.15

$3.87 discount

UndervaluedFair: $18.02Overvalued
TEVAUndervalued (+39.4%)

Margin of Safety

+39.4%

Fair Value

$56.63

Current Price

$29.46

$27.17 discount

UndervaluedFair: $56.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HCM4 strengths · Avg: 10.0/10
P/E RatioValuation
5.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
45.3%10/10

Every $100 of equity generates 45 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

TEVA4 strengths · Avg: 8.3/10
Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

Operating MarginProfitability
27.3%8/10

Strong operational efficiency at 27.3%

EPS GrowthGrowth
40.0%8/10

Earnings expanding 40.0% YoY

Free Cash FlowQuality
$1.02B8/10

Generating 1.0B in free cash flow

Areas to Watch

HCM4 concerns · Avg: 2.8/10
Price/BookValuation
9.8x4/10

Trading at 9.8x book value

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%

TEVA1 concerns · Avg: 2.0/10
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 Return on Equity, Operating Margin, EPS Growth. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.43 suggests the stock is reasonably priced for its growth.

Bear Case : HCM

The primary concerns for HCM are Price/Book, Piotroski F-Score, Revenue Growth.

Bear Case : TEVA

The primary concerns for TEVA are Altman Z-Score.

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 0.72 — expect wider price swings.

TEVA is growing revenue faster at 11.4% — sustainability is the question.

TEVA generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

TEVA scores higher overall (73/100 vs 42/100) and 11.4% revenue growth. HCM offers better value entry with a 16.1% 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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