Reviewing Bristol Myers Squibb (NYSE:BMY) & Takeda Pharmaceutical (NYSE:TAK)

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

Earnings and Valuation

This table compares Takeda Pharmaceutical and Bristol Myers Squibb”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Takeda Pharmaceutical	$28.32 billion	2.02	-$1.01 billion	$0.34	52.43
Bristol Myers Squibb	$48.19 billion	2.49	$7.05 billion	$4.54	12.94

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

Volatility and Risk

Takeda Pharmaceutical has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500. Comparatively, Bristol Myers Squibb has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Dividends

Takeda Pharmaceutical pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. Bristol Myers Squibb pays an annual dividend of $2.52 per share and has a dividend yield of 4.3%. Takeda Pharmaceutical pays out 141.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bristol Myers Squibb pays out 55.5% of its earnings in the form of a dividend. Bristol Myers Squibb has raised its dividend for 17 consecutive years. Bristol Myers Squibb is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

9.2% of Takeda Pharmaceutical shares are held by institutional investors. Comparatively, 76.4% of Bristol Myers Squibb shares are held by institutional investors. 0.0% of Takeda Pharmaceutical shares are held by company insiders. Comparatively, 0.1% of Bristol Myers Squibb shares are held by company 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.

Analyst Ratings

This is a summary of current ratings and price targets for Takeda Pharmaceutical and Bristol Myers Squibb, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Takeda Pharmaceutical	0	2	2	0	2.50
Bristol Myers Squibb	1	11	11	2	2.56

Bristol Myers Squibb has a consensus target price of $67.00, suggesting a potential upside of 14.08%. Given Bristol Myers Squibb’s stronger consensus rating and higher possible upside, analysts clearly believe Bristol Myers Squibb is more favorable than Takeda Pharmaceutical.

Profitability

This table compares Takeda Pharmaceutical and Bristol Myers Squibb’s 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%
Bristol Myers Squibb	18.87%	66.90%	14.74%

Summary

Bristol Myers Squibb beats Takeda Pharmaceutical on 17 of the 18 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 Bristol Myers Squibb

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. The company's products include Eliquis for reduction in risk of stroke/systemic embolism in non-valvular atrial fibrillation, and for the treatment of DVT/PE; Opdivo for various anti-cancer indications, including bladder, blood, CRC, head and neck, RCC, HCC, lung, melanoma, MPM, stomach and esophageal cancer; Pomalyst/Imnovid for multiple myeloma; Orencia for active rheumatoid arthritis and psoriatic arthritis; and Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia. It also provides Yervoy for the treatment of patients with unresectable or metastatic melanoma; Empliciti for the treatment of multiple myeloma; Abecma for the treatment of relapsed or refractory multiple myeloma; Reblozyl for the treatment of anemia; Opdualag for the treatment of unresectable or metastatic melanoma; and Zeposia to treat relapsing forms of multiple sclerosis. In addition, the company offers Breyanzi for the treatment of relapsed or refractory large B-cell lymphoma; Onureg for the treatment of AML; Inrebic for the treatment of myelofibrosis; Camzyos for the treatment of symptomatic obstructive HCM to enhance functional capacity and symptom; Sotyktu for the treatment of moderate-to-severe plaque psoriasis; Augtyro for the treatment of locally advanced or metastatic ROS1-positive NSCLC; Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; and Abraxane to treat breast cancer, NSCLC and pancreatic cancer. It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. The company was formerly known as Bristol-Myers Company. Bristol-Myers Squibb Company was founded in 1887 and is headquartered in Princeton, New Jersey.