WallStSmart

HUTCHMED DRC (HCM)vsUnited Therapeutics Corporation (UTHR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Therapeutics Corporation generates 480% more annual revenue ($3.18B vs $548.51M). HCM leads profitability with a 83.3% profit margin vs 41.9%. HCM trades at a lower P/E of 5.3x. UTHR earns a higher WallStSmart Score of 67/100 (B-).

HCM

Hold

42

out of 100

Grade: D

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

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

HCMUndervalued (+16.1%)

Margin of Safety

+16.1%

Fair Value

$18.02

Current Price

$14.15

$3.87 discount

UndervaluedFair: $18.02Overvalued
UTHRUndervalued (+62.9%)

Margin of Safety

+62.9%

Fair Value

$1282.02

Current Price

$541.60

$740.42 discount

UndervaluedFair: $1282.02Overvalued

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

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

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%

UTHR1 concerns · Avg: 4.0/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

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 : 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 : HCM

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

Bear Case : UTHR

The primary concerns for UTHR are PEG Ratio.

Key Dynamics to Monitor

HCM profiles as a declining 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.

UTHR generates stronger free cash flow (173M), providing more financial flexibility.

Bottom Line

UTHR scores higher overall (67/100 vs 42/100), backed by strong 41.9% margins. 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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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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