ABT vs. TAK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABT and TAK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ABT’s market capitalization of 233.90 billion USD is substantially larger than TAK’s 48.28 billion USD, indicating a significant difference in their market valuations.
ABT’s beta of 0.74 points to significantly higher volatility compared to TAK (beta: 0.26), suggesting ABT has greater potential for both gains and losses relative to market movements.
TAK is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ABT, on the other hand, is a domestic entity.
| Symbol | ABT | TAK |
|---|---|---|
| Company Name | Abbott Laboratories | Takeda Pharmaceutical Company Limited |
| Country | US | JP |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Devices | Drug Manufacturers - Specialty & Generic |
| CEO | Robert B. Ford | Christophe Weber |
| Price | 134.44 USD | 15.34 USD |
| Market Cap | 233.90 billion USD | 48.28 billion USD |
| Beta | 0.74 | 0.26 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | January 5, 2010 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ABT and TAK by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ABT
30.76%
Medical - Devices Industry
- Max
- 49.04%
- Q3
- 9.53%
- Median
- -7.46%
- Q1
- -32.83%
- Min
- -82.64%
In the upper quartile for the Medical - Devices industry, ABT’s Return on Equity of 30.76% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
TAK
1.48%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 51.32%
- Q3
- 9.89%
- Median
- -3.37%
- Q1
- -20.99%
- Min
- -36.07%
TAK’s Return on Equity of 1.48% is on par with the norm for the Drug Manufacturers - Specialty & Generic industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ABT
19.13%
Medical - Devices Industry
- Max
- 21.88%
- Q3
- 6.63%
- Median
- -1.11%
- Q1
- -21.08%
- Min
- -51.95%
In the upper quartile for the Medical - Devices industry, ABT’s Return on Invested Capital of 19.13% signifies a highly effective use of its capital to generate profits when compared to its peers.
TAK
2.23%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 22.54%
- Q3
- 8.45%
- Median
- 1.42%
- Q1
- -9.01%
- Min
- -28.41%
TAK’s Return on Invested Capital of 2.23% is in line with the norm for the Drug Manufacturers - Specialty & Generic industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
ABT
31.89%
Medical - Devices Industry
- Max
- 44.80%
- Q3
- 9.77%
- Median
- -5.53%
- Q1
- -29.37%
- Min
- -87.68%
A Net Profit Margin of 31.89% places ABT in the upper quartile for the Medical - Devices industry, signifying strong profitability and more effective cost management than most of its peers.
TAK
2.36%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 40.33%
- Q3
- 11.92%
- Median
- -0.45%
- Q1
- -13.07%
- Min
- -34.27%
TAK’s Net Profit Margin of 2.36% is aligned with the median group of its peers in the Drug Manufacturers - Specialty & Generic industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ABT
16.97%
Medical - Devices Industry
- Max
- 30.13%
- Q3
- 13.12%
- Median
- 3.47%
- Q1
- -24.42%
- Min
- -80.56%
An Operating Profit Margin of 16.97% places ABT in the upper quartile for the Medical - Devices industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TAK
9.62%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 46.91%
- Q3
- 19.02%
- Median
- 6.23%
- Q1
- -11.23%
- Min
- -51.89%
TAK’s Operating Profit Margin of 9.62% is around the midpoint for the Drug Manufacturers - Specialty & Generic industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ABT | TAK |
|---|---|---|
| Return on Equity (TTM) | 30.76% | 1.48% |
| Return on Assets (TTM) | 16.58% | 0.76% |
| Return on Invested Capital (TTM) | 19.13% | 2.23% |
| Net Profit Margin (TTM) | 31.89% | 2.36% |
| Operating Profit Margin (TTM) | 16.97% | 9.62% |
| Gross Profit Margin (TTM) | 55.89% | 54.70% |
Financial Strength
Current Ratio
ABT
1.78
Medical - Devices Industry
- Max
- 12.68
- Q3
- 6.30
- Median
- 4.05
- Q1
- 1.85
- Min
- 0.01
ABT’s Current Ratio of 1.78 falls into the lower quartile for the Medical - Devices industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
TAK
1.01
Drug Manufacturers - Specialty & Generic Industry
- Max
- 5.74
- Q3
- 3.37
- Median
- 2.64
- Q1
- 1.73
- Min
- 0.88
TAK’s Current Ratio of 1.01 falls into the lower quartile for the Drug Manufacturers - Specialty & Generic industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ABT
0.27
Medical - Devices Industry
- Max
- 2.34
- Q3
- 1.09
- Median
- 0.37
- Q1
- 0.08
- Min
- 0.00
ABT’s Debt-to-Equity Ratio of 0.27 is typical for the Medical - Devices industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
TAK
0.65
Drug Manufacturers - Specialty & Generic Industry
- Max
- 1.45
- Q3
- 1.06
- Median
- 0.62
- Q1
- 0.13
- Min
- 0.00
TAK’s Debt-to-Equity Ratio of 0.65 is typical for the Drug Manufacturers - Specialty & Generic industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ABT
15.39
Medical - Devices Industry
- Max
- 18.18
- Q3
- 7.53
- Median
- 0.85
- Q1
- -9.80
- Min
- -33.94
ABT’s Interest Coverage Ratio of 15.39 is in the upper quartile for the Medical - Devices industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
TAK
2.10
Drug Manufacturers - Specialty & Generic Industry
- Max
- 10.17
- Q3
- 3.39
- Median
- 0.85
- Q1
- -2.63
- Min
- -5.84
TAK’s Interest Coverage Ratio of 2.10 is positioned comfortably within the norm for the Drug Manufacturers - Specialty & Generic industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ABT | TAK |
|---|---|---|
| Current Ratio (TTM) | 1.78 | 1.01 |
| Quick Ratio (TTM) | 1.27 | 0.52 |
| Debt-to-Equity Ratio (TTM) | 0.27 | 0.65 |
| Debt-to-Asset Ratio (TTM) | 0.16 | 0.32 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.60 | 3.57 |
| Interest Coverage Ratio (TTM) | 15.39 | 2.10 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABT and TAK. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ABT
1.70%
Medical - Devices Industry
- Max
- 3.57%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.70%, ABT offers a more attractive income stream than most of its peers in the Medical - Devices industry, signaling a strong commitment to shareholder returns.
TAK
4.41%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 9.29%
- Q3
- 0.31%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 4.41%, TAK offers a more attractive income stream than most of its peers in the Drug Manufacturers - Specialty & Generic industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ABT
28.92%
Medical - Devices Industry
- Max
- 102.12%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ABT’s Dividend Payout Ratio of 28.92% is in the upper quartile for the Medical - Devices industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
TAK
280.28%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 125.42%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TAK’s Dividend Payout Ratio of 280.28% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | ABT | TAK |
|---|---|---|
| Dividend Yield (TTM) | 1.70% | 4.41% |
| Dividend Payout Ratio (TTM) | 28.92% | 280.28% |
Valuation
Price-to-Earnings Ratio
ABT
17.40
Medical - Devices Industry
- Max
- 90.56
- Q3
- 56.92
- Median
- 43.19
- Q1
- 21.79
- Min
- 5.55
In the lower quartile for the Medical - Devices industry, ABT’s P/E Ratio of 17.40 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
TAK
65.07
Drug Manufacturers - Specialty & Generic Industry
- Max
- 40.89
- Q3
- 28.12
- Median
- 23.94
- Q1
- 18.79
- Min
- 7.76
At 65.07, TAK’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Drug Manufacturers - Specialty & Generic industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ABT
1.73
Medical - Devices Industry
- Max
- 6.56
- Q3
- 3.52
- Median
- 2.22
- Q1
- 0.55
- Min
- 0.03
ABT’s Forward PEG Ratio of 1.73 is within the middle range of its peers in the Medical - Devices industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
TAK
3.23
Drug Manufacturers - Specialty & Generic Industry
- Max
- 4.19
- Q3
- 2.94
- Median
- 1.47
- Q1
- 0.35
- Min
- 0.00
A Forward PEG Ratio of 3.23 places TAK in the upper quartile for the Drug Manufacturers - Specialty & Generic industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
ABT
5.52
Medical - Devices Industry
- Max
- 15.74
- Q3
- 8.12
- Median
- 3.40
- Q1
- 2.37
- Min
- 0.42
ABT’s P/S Ratio of 5.52 aligns with the market consensus for the Medical - Devices industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
TAK
1.53
Drug Manufacturers - Specialty & Generic Industry
- Max
- 7.49
- Q3
- 4.45
- Median
- 2.12
- Q1
- 1.21
- Min
- 0.25
TAK’s P/S Ratio of 1.53 aligns with the market consensus for the Drug Manufacturers - Specialty & Generic industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ABT
4.81
Medical - Devices Industry
- Max
- 16.65
- Q3
- 8.03
- Median
- 3.73
- Q1
- 1.92
- Min
- 0.65
ABT’s P/B Ratio of 4.81 is within the conventional range for the Medical - Devices industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
TAK
1.01
Drug Manufacturers - Specialty & Generic Industry
- Max
- 4.93
- Q3
- 3.95
- Median
- 2.14
- Q1
- 1.30
- Min
- 0.13
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - Specialty & Generic industry.
Valuation at a Glance
| Symbol | ABT | TAK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 17.40 | 65.07 |
| Forward PEG Ratio (TTM) | 1.73 | 3.23 |
| Price-to-Sales Ratio (P/S, TTM) | 5.52 | 1.53 |
| Price-to-Book Ratio (P/B, TTM) | 4.81 | 1.01 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 35.14 | 9.97 |
| EV-to-EBITDA (TTM) | 21.49 | 9.61 |
| EV-to-Sales (TTM) | 5.68 | 2.43 |