TEVA vs. TMO: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at TEVA and TMO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TMO’s market capitalization of 155.03 billion USD is significantly greater than TEVA’s 19.50 billion USD, highlighting its more substantial market valuation.
With betas of 0.61 for TEVA and 0.78 for TMO, both stocks show similar sensitivity to overall market movements.
TEVA trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, TMO is a standard domestic listing.
| Symbol | TEVA | TMO |
|---|---|---|
| Company Name | Teva Pharmaceutical Industries Limited | Thermo Fisher Scientific Inc. |
| Country | IL | US |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - Specialty & Generic | Medical - Diagnostics & Research |
| CEO | Richard D. Francis | Mr. Marc N. Casper |
| Price | 17 USD | 410.67 USD |
| Market Cap | 19.50 billion USD | 155.03 billion USD |
| Beta | 0.61 | 0.78 |
| Exchange | NYSE | NYSE |
| IPO Date | February 16, 1982 | March 17, 1980 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of TEVA and TMO 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.
Profitability
Return on Equity
TEVA
-21.38%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 51.32%
- Q3
- 8.73%
- Median
- -3.37%
- Q1
- -20.60%
- Min
- -36.07%
TEVA has a negative Return on Equity of -21.38%. 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.
TMO
13.34%
Medical - Diagnostics & Research Industry
- Max
- 54.36%
- Q3
- 13.25%
- Median
- 3.19%
- Q1
- -15.72%
- Min
- -48.78%
In the upper quartile for the Medical - Diagnostics & Research industry, TMO’s Return on Equity of 13.34% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
TEVA
3.97%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 22.54%
- Q3
- 7.92%
- Median
- 0.81%
- Q1
- -8.71%
- Min
- -29.48%
TEVA’s Return on Invested Capital of 3.97% 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.
TMO
7.71%
Medical - Diagnostics & Research Industry
- Max
- 35.27%
- Q3
- 8.77%
- Median
- 2.93%
- Q1
- -11.01%
- Min
- -37.51%
TMO’s Return on Invested Capital of 7.71% is in line with the norm for the Medical - Diagnostics & Research industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
TEVA
-7.74%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 40.33%
- Q3
- 11.39%
- Median
- -0.45%
- Q1
- -12.04%
- Min
- -26.47%
TEVA has a negative Net Profit Margin of -7.74%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
TMO
15.19%
Medical - Diagnostics & Research Industry
- Max
- 40.30%
- Q3
- 13.36%
- Median
- 1.94%
- Q1
- -22.72%
- Min
- -54.98%
A Net Profit Margin of 15.19% places TMO in the upper quartile for the Medical - Diagnostics & Research industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
TEVA
2.61%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 46.91%
- Q3
- 17.78%
- Median
- 5.95%
- Q1
- -10.38%
- Min
- -51.89%
TEVA’s Operating Profit Margin of 2.61% 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.
TMO
17.08%
Medical - Diagnostics & Research Industry
- Max
- 48.97%
- Q3
- 17.88%
- Median
- 6.81%
- Q1
- -24.71%
- Min
- -87.95%
TMO’s Operating Profit Margin of 17.08% is around the midpoint for the Medical - Diagnostics & Research industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | TEVA | TMO |
|---|---|---|
| Return on Equity (TTM) | -21.38% | 13.34% |
| Return on Assets (TTM) | -3.35% | 6.58% |
| Return on Invested Capital (TTM) | 3.97% | 7.71% |
| Net Profit Margin (TTM) | -7.74% | 15.19% |
| Operating Profit Margin (TTM) | 2.61% | 17.08% |
| Gross Profit Margin (TTM) | 49.17% | 41.57% |
Financial Strength
Current Ratio
TEVA
1.03
Drug Manufacturers - Specialty & Generic Industry
- Max
- 6.36
- Q3
- 3.83
- Median
- 2.64
- Q1
- 1.87
- Min
- 0.88
TEVA’s Current Ratio of 1.03 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.
TMO
1.77
Medical - Diagnostics & Research Industry
- Max
- 6.91
- Q3
- 4.11
- Median
- 2.47
- Q1
- 1.64
- Min
- 0.73
TMO’s Current Ratio of 1.77 aligns with the median group of the Medical - Diagnostics & Research industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
TEVA
2.71
Drug Manufacturers - Specialty & Generic Industry
- Max
- 2.89
- Q3
- 1.25
- Median
- 0.58
- Q1
- 0.12
- Min
- 0.00
TEVA’s leverage is in the upper quartile of the Drug Manufacturers - Specialty & Generic industry, with a Debt-to-Equity Ratio of 2.71. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
TMO
0.69
Medical - Diagnostics & Research Industry
- Max
- 1.10
- Q3
- 0.81
- Median
- 0.41
- Q1
- 0.17
- Min
- 0.00
TMO’s Debt-to-Equity Ratio of 0.69 is typical for the Medical - Diagnostics & Research 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
TEVA
0.44
Drug Manufacturers - Specialty & Generic Industry
- Max
- 10.17
- Q3
- 3.39
- Median
- 0.85
- Q1
- -2.63
- Min
- -5.84
TEVA’s Interest Coverage Ratio of 0.44 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.
TMO
5.51
Medical - Diagnostics & Research Industry
- Max
- 46.68
- Q3
- 5.54
- Median
- 1.76
- Q1
- -35.64
- Min
- -57.46
TMO’s Interest Coverage Ratio of 5.51 is positioned comfortably within the norm for the Medical - Diagnostics & Research industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | TEVA | TMO |
|---|---|---|
| Current Ratio (TTM) | 1.03 | 1.77 |
| Quick Ratio (TTM) | 0.74 | 1.38 |
| Debt-to-Equity Ratio (TTM) | 2.71 | 0.69 |
| Debt-to-Asset Ratio (TTM) | 0.44 | 0.35 |
| Net Debt-to-EBITDA Ratio (TTM) | 10.26 | 2.84 |
| Interest Coverage Ratio (TTM) | 0.44 | 5.51 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for TEVA and TMO. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
TEVA
0.00%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 9.80%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TEVA 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.
TMO
0.40%
Medical - Diagnostics & Research Industry
- Max
- 1.70%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.40%, TMO offers a more attractive income stream than most of its peers in the Medical - Diagnostics & Research industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
TEVA
0.00%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 125.42%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TEVA 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.
TMO
9.16%
Medical - Diagnostics & Research Industry
- Max
- 37.46%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TMO’s Dividend Payout Ratio of 9.16% is in the upper quartile for the Medical - Diagnostics & Research 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.
Dividend at a Glance
| Symbol | TEVA | TMO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.40% |
| Dividend Payout Ratio (TTM) | 0.00% | 9.16% |
Valuation
Price-to-Earnings Ratio
TEVA
-15.10
Drug Manufacturers - Specialty & Generic Industry
- Max
- 62.84
- Q3
- 33.13
- Median
- 25.69
- Q1
- 11.41
- Min
- 3.90
TEVA has a negative P/E Ratio of -15.10. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
TMO
23.83
Medical - Diagnostics & Research Industry
- Max
- 47.60
- Q3
- 39.82
- Median
- 28.36
- Q1
- 21.29
- Min
- 2.06
TMO’s P/E Ratio of 23.83 is within the middle range for the Medical - Diagnostics & Research industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
TEVA
-1.12
Drug Manufacturers - Specialty & Generic Industry
- Max
- 4.25
- Q3
- 3.10
- Median
- 1.45
- Q1
- 0.39
- Min
- 0.00
TEVA has a negative Forward PEG Ratio of -1.12. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
TMO
2.52
Medical - Diagnostics & Research Industry
- Max
- 4.06
- Q3
- 3.62
- Median
- 1.85
- Q1
- 0.17
- Min
- 0.04
TMO’s Forward PEG Ratio of 2.52 is within the middle range of its peers in the Medical - Diagnostics & Research industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
TEVA
1.18
Drug Manufacturers - Specialty & Generic Industry
- Max
- 7.54
- Q3
- 4.87
- Median
- 2.60
- Q1
- 1.26
- Min
- 0.24
In the lower quartile for the Drug Manufacturers - Specialty & Generic industry, TEVA’s P/S Ratio of 1.18 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.
TMO
3.61
Medical - Diagnostics & Research Industry
- Max
- 10.72
- Q3
- 6.04
- Median
- 3.52
- Q1
- 1.78
- Min
- 0.27
TMO’s P/S Ratio of 3.61 aligns with the market consensus for the Medical - Diagnostics & Research industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
TEVA
3.10
Drug Manufacturers - Specialty & Generic Industry
- Max
- 7.77
- Q3
- 3.94
- Median
- 2.28
- Q1
- 1.11
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - Specialty & Generic industry.
TMO
3.15
Medical - Diagnostics & Research Industry
- Max
- 10.38
- Q3
- 5.72
- Median
- 2.87
- Q1
- 1.23
- Min
- 0.20
The P/B Ratio is often not a primary valuation metric for the Medical - Diagnostics & Research industry.
Valuation at a Glance
| Symbol | TEVA | TMO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -15.10 | 23.83 |
| Forward PEG Ratio (TTM) | -1.12 | 2.52 |
| Price-to-Sales Ratio (P/S, TTM) | 1.18 | 3.61 |
| Price-to-Book Ratio (P/B, TTM) | 3.10 | 3.15 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.58 | 23.06 |
| EV-to-EBITDA (TTM) | 23.44 | 17.46 |
| EV-to-Sales (TTM) | 2.10 | 4.31 |