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HCM vs. VTRS: A Head-to-Head Stock Comparison

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Here’s a clear look at HCM and VTRS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

HCM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, VTRS is a standard domestic listing.

SymbolHCMVTRS
Company NameHUTCHMED (China) LimitedViatris Inc.
CountryHong KongUnited States
GICS SectorHealth CareHealth Care
GICS IndustryPharmaceuticalsPharmaceuticals
Market Capitalization2.73 billion USD12.42 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateMarch 16, 2016March 17, 1980
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of HCM and VTRS 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.

HCM vs. VTRS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolHCMVTRS
5-Day Price Return0.16%-0.37%
13-Week Price Return18.50%21.58%
26-Week Price Return24.64%-1.39%
52-Week Price Return---9.97%
Month-to-Date Return-10.50%21.85%
Year-to-Date Return11.93%-14.46%
10-Day Avg. Volume19.33M11.82M
3-Month Avg. Volume9.63M12.30M
3-Month Volatility55.24%32.62%
Beta0.790.89

Profitability

Return on Equity (TTM)

HCM

37.02%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.90%
Q1
5.63%
Min
-9.96%

In the upper quartile for the Pharmaceuticals industry, HCM’s Return on Equity of 37.02% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

VTRS

-19.92%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.90%
Q1
5.63%
Min
-9.96%

VTRS has a negative Return on Equity of -19.92%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

HCM vs. VTRS: A comparison of their Return on Equity (TTM) against the Pharmaceuticals industry benchmark.

Net Profit Margin (TTM)

HCM

77.53%

Pharmaceuticals Industry

Max
34.51%
Q3
17.73%
Median
12.12%
Q1
5.99%
Min
-7.73%

HCM’s Net Profit Margin of 77.53% is exceptionally high, placing it well beyond the typical range for the Pharmaceuticals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

VTRS

-24.57%

Pharmaceuticals Industry

Max
34.51%
Q3
17.73%
Median
12.12%
Q1
5.99%
Min
-7.73%

VTRS has a negative Net Profit Margin of -24.57%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

HCM vs. VTRS: A comparison of their Net Profit Margin (TTM) against the Pharmaceuticals industry benchmark.

Operating Profit Margin (TTM)

HCM

-3.27%

Pharmaceuticals Industry

Max
41.53%
Q3
23.00%
Median
16.24%
Q1
9.24%
Min
-6.94%

HCM has a negative Operating Profit Margin of -3.27%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

VTRS

-26.54%

Pharmaceuticals Industry

Max
41.53%
Q3
23.00%
Median
16.24%
Q1
9.24%
Min
-6.94%

VTRS has a negative Operating Profit Margin of -26.54%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

HCM vs. VTRS: A comparison of their Operating Profit Margin (TTM) against the Pharmaceuticals industry benchmark.

Profitability at a Glance

SymbolHCMVTRS
Return on Equity (TTM)37.02%-19.92%
Return on Assets (TTM)25.62%-8.50%
Net Profit Margin (TTM)77.53%-24.57%
Operating Profit Margin (TTM)-3.27%-26.54%
Gross Profit Margin (TTM)44.15%40.15%

Financial Strength

Current Ratio (MRQ)

HCM

4.65

Pharmaceuticals Industry

Max
4.49
Q3
2.77
Median
1.74
Q1
1.26
Min
0.11

HCM’s Current Ratio of 4.65 is exceptionally high, placing it well outside the typical range for the Pharmaceuticals industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

VTRS

1.37

Pharmaceuticals Industry

Max
4.49
Q3
2.77
Median
1.74
Q1
1.26
Min
0.11

VTRS’s Current Ratio of 1.37 aligns with the median group of the Pharmaceuticals industry, indicating that its short-term liquidity is in line with its sector peers.

HCM vs. VTRS: A comparison of their Current Ratio (MRQ) against the Pharmaceuticals industry benchmark.

Debt-to-Equity Ratio (MRQ)

HCM

0.08

Pharmaceuticals Industry

Max
2.44
Q3
1.07
Median
0.42
Q1
0.11
Min
0.00

Falling into the lower quartile for the Pharmaceuticals industry, HCM’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

VTRS

0.82

Pharmaceuticals Industry

Max
2.44
Q3
1.07
Median
0.42
Q1
0.11
Min
0.00

VTRS’s Debt-to-Equity Ratio of 0.82 is typical for the Pharmaceuticals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

HCM vs. VTRS: A comparison of their Debt-to-Equity Ratio (MRQ) against the Pharmaceuticals industry benchmark.

Interest Coverage Ratio (TTM)

HCM

13.00

Pharmaceuticals Industry

Max
103.95
Q3
44.18
Median
9.83
Q1
2.82
Min
-42.71

HCM’s Interest Coverage Ratio of 13.00 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.

VTRS

-0.13

Pharmaceuticals Industry

Max
103.95
Q3
44.18
Median
9.83
Q1
2.82
Min
-42.71

VTRS has a negative Interest Coverage Ratio of -0.13. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

HCM vs. VTRS: A comparison of their Interest Coverage Ratio (TTM) against the Pharmaceuticals industry benchmark.

Financial Strength at a Glance

SymbolHCMVTRS
Current Ratio (MRQ)4.651.37
Quick Ratio (MRQ)4.480.65
Debt-to-Equity Ratio (MRQ)0.080.82
Interest Coverage Ratio (TTM)13.00-0.13

Growth

Revenue Growth

HCM vs. VTRS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

HCM vs. VTRS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

HCM

0.00%

Pharmaceuticals Industry

Max
6.98%
Q3
3.32%
Median
2.13%
Q1
0.14%
Min
0.00%

HCM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

VTRS

4.58%

Pharmaceuticals Industry

Max
6.98%
Q3
3.32%
Median
2.13%
Q1
0.14%
Min
0.00%

With a Dividend Yield of 4.58%, VTRS offers a more attractive income stream than most of its peers in the Pharmaceuticals industry, signaling a strong commitment to shareholder returns.

HCM vs. VTRS: A comparison of their Dividend Yield (TTM) against the Pharmaceuticals industry benchmark.

Dividend Payout Ratio (TTM)

HCM

0.00%

Pharmaceuticals Industry

Max
165.20%
Q3
90.59%
Median
49.13%
Q1
28.91%
Min
0.00%

HCM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

VTRS

137.04%

Pharmaceuticals Industry

Max
165.20%
Q3
90.59%
Median
49.13%
Q1
28.91%
Min
0.00%

VTRS’s Dividend Payout Ratio of 137.04% is in the upper quartile for the Pharmaceuticals 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.

HCM vs. VTRS: A comparison of their Dividend Payout Ratio (TTM) against the Pharmaceuticals industry benchmark.

Dividend at a Glance

SymbolHCMVTRS
Dividend Yield (TTM)0.00%4.58%
Dividend Payout Ratio (TTM)0.00%137.04%

Valuation

Price-to-Earnings Ratio (TTM)

HCM

6.19

Pharmaceuticals Industry

Max
42.51
Q3
26.88
Median
19.11
Q1
15.12
Min
0.00

In the lower quartile for the Pharmaceuticals industry, HCM’s P/E Ratio of 6.19 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

VTRS

--

Pharmaceuticals Industry

Max
42.51
Q3
26.88
Median
19.11
Q1
15.12
Min
0.00

P/E Ratio data for VTRS is currently unavailable.

HCM vs. VTRS: A comparison of their Price-to-Earnings Ratio (TTM) against the Pharmaceuticals industry benchmark.

Price-to-Sales Ratio (TTM)

HCM

4.80

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

HCM’s P/S Ratio of 4.80 is in the upper echelon for the Pharmaceuticals industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

VTRS

0.88

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

In the lower quartile for the Pharmaceuticals industry, VTRS’s P/S Ratio of 0.88 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

HCM vs. VTRS: A comparison of their Price-to-Sales Ratio (TTM) against the Pharmaceuticals industry benchmark.

Price-to-Book Ratio (MRQ)

HCM

2.14

Pharmaceuticals Industry

Max
9.78
Q3
4.96
Median
2.23
Q1
1.46
Min
0.60

HCM’s P/B Ratio of 2.14 is within the conventional range for the Pharmaceuticals 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.

VTRS

0.67

Pharmaceuticals Industry

Max
9.78
Q3
4.96
Median
2.23
Q1
1.46
Min
0.60

VTRS’s P/B Ratio of 0.67 is in the lower quartile for the Pharmaceuticals industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

HCM vs. VTRS: A comparison of their Price-to-Book Ratio (MRQ) against the Pharmaceuticals industry benchmark.

Valuation at a Glance

SymbolHCMVTRS
Price-to-Earnings Ratio (TTM)6.19--
Price-to-Sales Ratio (TTM)4.800.88
Price-to-Book Ratio (MRQ)2.140.67
Price-to-Free Cash Flow Ratio (TTM)88.937.29