Contrasting Teva Pharmaceutical Industries (NYSE:TEVA) and Takeda Pharmaceutical (NYSE:TAK)

Takeda Pharmaceutical (NYSE:TAK) and Teva Pharmaceutical Industries (NYSE:TEVA) are both large-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares Takeda Pharmaceutical and Teva Pharmaceutical Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Takeda Pharmaceutical	3.80%	10.95%	5.34%
Teva Pharmaceutical Industries	4.08%	32.64%	6.34%

Valuation and Earnings

This table compares Takeda Pharmaceutical and Teva Pharmaceutical Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Takeda Pharmaceutical	$28.32 billion	2.07	-$1.01 billion	$0.34	53.72
Teva Pharmaceutical Industries	$17.26 billion	2.50	$1.41 billion	$0.60	61.68

Teva Pharmaceutical Industries has lower revenue, but higher earnings than Takeda Pharmaceutical. Takeda Pharmaceutical is trading at a lower price-to-earnings ratio than Teva Pharmaceutical Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Takeda Pharmaceutical and Teva Pharmaceutical Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Takeda Pharmaceutical	0	1	2	1	3.00
Teva Pharmaceutical Industries	0	1	10	0	2.91

Teva Pharmaceutical Industries has a consensus target price of $43.10, indicating a potential upside of 16.46%. Given Teva Pharmaceutical Industries’ higher possible upside, analysts clearly believe Teva Pharmaceutical Industries is more favorable than Takeda Pharmaceutical.

Risk and Volatility

Takeda Pharmaceutical has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

9.2% of Takeda Pharmaceutical shares are owned by institutional investors. Comparatively, 54.0% of Teva Pharmaceutical Industries shares are owned by institutional investors. 0.0% of Takeda Pharmaceutical shares are owned by insiders. Comparatively, 0.5% of Teva Pharmaceutical Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Teva Pharmaceutical Industries beats Takeda Pharmaceutical on 12 of the 15 factors compared between the two stocks.

About Takeda Pharmaceutical

Takeda Pharmaceutical Company Limited engages in the research, development, manufacture, marketing, and out-licensing of pharmaceutical products in Japan and internationally. It offers pharmaceutical products in the areas of gastroenterology, rare diseases, plasma derived therapies, immunology, oncology, and neuroscience. The company provides its products under the Entyvio, Gattex/Revestive, Takecab/Vocinti, Alofisel, Dexilant, Pantoloc/Controloc, Adynovate/Adynovi, Feiba, Recombinate, Hemofil/Immunate/Immunine, Takhzyro, Livtencity, Elaprase, Replagal, Advate, Flexbumin, Vpriv, Gammagard Liquid/Kiovig, Hyqvia, Cuvitru, Exkivity, Ninlaro, Velcade, Azilva-F, Lotriga, Iclusig, Leuplin/Enantone, Adcetris, vyvanse/elvanse, Trintellix, and Alunbrig brands. It has in-license agreement with BioMarin, Luxna Biotech, GlaxoSmithKline, Halozyme, and Kamada; collaboration with Neurocrine Biosciences, Inc., Seagen Inc., Anima Biotech, Denali Therapeutics, KSQ Therapeutics, Noile-Immune Biotech, Center for iPS Cell Research Application, Kyoto University (CiRA), and Charles River Laboratories; licensing agreement with Mirum Pharmaceuticals and Twist Bioscience, UCSD/Fortis Advisors, PeptiDream, MD Anderson Cancer Center, Teva Pharmaceutical Industries, and Xenetic Biosciences; collaboration and licensing agreement with Arrowhead Pharmaceuticals Inc., Engitix, Genevant Sciences Corporation, Sosei Heptares, Zedira/Dr. Falk Pharma, Exelixis, Inc., GlaxoSmithKline, Heidelberg Pharma, HUTCHMED, Presage Biosciences, Codexis, Inc., Ensoma, Envozyne, KM Biologics, and Selecta BioScience, and Ovid Therapeutics Inc.; and collaboration with ZEDIRA GmbH and Dr. Falk Pharma GmbH. It has research collaboration and licensing agreement with Crescendo Biologics, Code Bio, Immusoft, Poseida Therapeutics, and Selecta Biosciences. The company was founded in 1781 and is headquartered in Tokyo, Japan.

About Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin’s lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington’s disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.