GEHC vs. TEVA: A Head-to-Head Stock Comparison

Company Overview

GEHC’s market capitalization of 33.08 billion USD is substantially larger than TEVA’s 19.47 billion USD, indicating a significant difference in their market valuations.

GEHC’s beta of 1.29 points to significantly higher volatility compared to TEVA (beta: 0.61), suggesting GEHC has greater potential for both gains and losses relative to market movements.

TEVA is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. GEHC, on the other hand, is a domestic entity.

Performance Comparison

This chart compares the performance of GEHC and TEVA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of GEHC and TEVA. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• TEVA’s Price-to-Earnings (P/E) ratio of -15.16 is negative. This indicates the company is currently not generating profit, a key factor that can weigh on its stock valuation and investor sentiment.
• TEVA’s Forward PEG ratio of -1.12 is negative. Such a figure commonly arises from negative earnings or forecasts of diminishing profitability, making standard valuation comparisons based on growth particularly challenging.

Dividend Comparison

GEHC provides a 0.18% dividend yield, potentially offering a blend of income and growth, whereas TEVA currently does not pay a dividend, possibly retaining profits to fund operations or growth initiatives.

Financial Strength Metrics Comparison

This section evaluates the financial strength of GEHC and TEVA. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• GEHC’s current ratio of 0.98 is considered low. This may signal potential challenges with its short-term liquidity, implying that its current assets might offer a limited buffer for meeting its immediate debts and could affect its capacity to smoothly manage upcoming financial duties.
• TEVA’s Debt-to-Equity (D/E) ratio of 2.71 is very high. This signals a considerable debt load relative to equity, potentially heightening its risk during economic downturns or if interest rates rise, and may affect its financial resilience.
• TEVA’s Interest Coverage Ratio (ICR) of 0.44 is critically low. This indicates that its margin of safety for covering interest payments is very narrow, suggesting potential difficulties in meeting these obligations if earnings decrease even slightly.