HCM
HUTCHMED (China) Limited
Drug Manufacturers - Specialty & Generic
Market Cap$2.26B
5Y Perf.-52.4%
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Stock Comparison
HCM vs LEGN
Revenue, margins, valuation, and 5-year total return — side by side.
LEGN
Legend Biotech Corporation
Biotechnology
Market Cap$5.19B
5Y Perf.-33.9%
HCM vs LEGN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | HCM | LEGN |
|---|---|---|
| Industry | Drug Manufacturers - Specialty & Generic | Biotechnology |
| Market Cap | $2.26B | $5.19B |
| Revenue (TTM) | $602M | $1.03B |
| Net Income (TTM) | $467M | $-297M |
| Gross Margin | 8.9% | 60.3% |
| Operating Margin | -3.3% | -13.2% |
| Forward P/E | 41.1x | 116.2x |
| Total Debt | $90M | $414M |
| Cash & Equiv. | $154M | $902M |
HCM vs LEGN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
HCM
LEGN
| Stock | Jun 20 | May 26 | Return |
|---|---|---|---|
| HUTCHMED (China) Li… (HCM) | 100 | 47.6 | -52.4% |
| Legend Biotech Corp… (LEGN) | 100 | 66.1 | -33.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: HCM vs LEGN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: HCM leads in 5 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Legend Biotech Corporation is the stronger pick specifically for growth and revenue expansion. As sector peers, any of these can serve as alternatives in the same allocation.
HCM
HUTCHMED (China) Limited
The Income Pick
HCM carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 0 yrs, beta 0.66
- -0.4% 10Y total return vs LEGN's -24.0%
- Lower volatility, beta 0.66, Low D/E 11.6%, current ratio 2.83x
Best for: income & stability and long-term compounding
LEGN
Legend Biotech Corporation
The Growth Play
LEGN is the clearest fit if your priority is growth exposure.
- Rev growth 64.5%, EPS growth -66.0%, 3Y rev CAGR 106.6%
- 64.5% revenue growth vs HCM's -24.8%
Best for: growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | LEGN | 64.5% revenue growth vs HCM's -24.8% |
| Value | HCM | Lower P/E (41.1x vs 116.2x) |
| Quality / Margins | HCM | 77.5% margin vs LEGN's -28.8% |
| Stability / Safety | HCM | Beta 0.66 vs LEGN's 0.76, lower leverage |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | HCM | -9.7% vs LEGN's -12.2% |
| Efficiency (ROA) | HCM | 30.6% ROA vs LEGN's -17.6%, ROIC -5.2% vs -12.7% |
HCM vs LEGN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2023
FY 2021
HCM vs LEGN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLHCMLAGGINGLEGN
LEGNLegend Biotech Corpor…
0leads
HCMHUTCHMED (China) Limi…
4leads
6 Total Categories
CATEGORYLEADERvs LEGNMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
HCM4/6
Valuation MetricsMultiples, price ratios, and targets
Tied
—
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
HCM7/9
Total Returns1Y, 3Y, 5Y total returns with dividends
HCM4/6
Risk & VolatilityBeta, volatility, and downside exposure
HCM2/2
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
HCM leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
LEGN is the larger business by revenue, generating $1.0B annually — 1.7x HCM's $602M. HCM is the more profitable business, keeping 77.5% of every revenue dollar as net income compared to LEGN's -28.8%. On growth, LEGN holds the edge at +64.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HCMHUTCHMED (China) … | LEGNLegend Biotech Co… |
|---|---|---|
| RevenueTrailing 12 months | $602M | $1.0B |
| EBITDAEarnings before interest/tax | -$7M | -$107M |
| Net IncomeAfter-tax profit | $467M | -$297M |
| Free Cash FlowCash after capex | -$50M | -$231M |
| Gross MarginGross profit ÷ Revenue | +8.9% | +60.3% |
| Operating MarginEBIT ÷ Revenue | -3.3% | -13.2% |
| Net MarginNet income ÷ Revenue | +77.5% | -28.8% |
| FCF MarginFCF ÷ Revenue | -8.2% | -22.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | -9.2% | +64.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +16.6% | -2.2% |
HCM leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
Evenly matched — HCM and LEGN each lead in 2 of 4 comparable metrics.
Valuation Metrics
| Metric | HCMHUTCHMED (China) … | LEGNLegend Biotech Co… |
|---|---|---|
| Market CapShares × price | $2.3B | $5.2B |
| Enterprise ValueMkt cap + debt − cash | $2.2B | $4.7B |
| Trailing P/EPrice ÷ TTM EPS | 59.68x | -8.73x |
| Forward P/EPrice ÷ next-FY EPS est. | 41.10x | 116.25x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | — |
| Price / SalesMarket cap ÷ Revenue | 3.58x | 5.03x |
| Price / BookPrice ÷ Book value/share | 2.97x | 2.59x |
| Price / FCFMarket cap ÷ FCF | — | — |
Evenly matched — HCM and LEGN each lead in 2 of 4 comparable metrics.
Profitability & Efficiency
HCM leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
HCM delivers a 46.4% return on equity — every $100 of shareholder capital generates $46 in annual profit, vs $-29 for LEGN. HCM carries lower financial leverage with a 0.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to LEGN's 0.41x. On the Piotroski fundamental quality scale (0–9), HCM scores 3/9 vs LEGN's 2/9, reflecting mixed financial health.
| Metric | HCMHUTCHMED (China) … | LEGNLegend Biotech Co… |
|---|---|---|
| ROE (TTM)Return on equity | +46.4% | -29.2% |
| ROA (TTM)Return on assets | +30.6% | -17.6% |
| ROICReturn on invested capital | -5.2% | -12.7% |
| ROCEReturn on capital employed | -4.9% | -11.0% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 2 |
| Debt / EquityFinancial leverage | 0.12x | 0.41x |
| Net DebtTotal debt minus cash | -$64M | -$488M |
| Cash & Equiv.Liquid assets | $154M | $902M |
| Total DebtShort + long-term debt | $90M | $414M |
| Interest CoverageEBIT ÷ Interest expense | -15.22x | -12.69x |
HCM leads this category, winning 7 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
HCM leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in LEGN five years ago would be worth $9,584 today (with dividends reinvested), compared to $5,254 for HCM. Over the past 12 months, HCM leads with a -9.7% total return vs LEGN's -12.2%. The 3-year compound annual growth rate (CAGR) favors HCM at -5.4% vs LEGN's -25.8% — a key indicator of consistent wealth creation.
| Metric | HCMHUTCHMED (China) … | LEGNLegend Biotech Co… |
|---|---|---|
| YTD ReturnYear-to-date | -3.8% | +30.7% |
| 1-Year ReturnPast 12 months | -9.7% | -12.2% |
| 3-Year ReturnCumulative with dividends | -15.4% | -59.1% |
| 5-Year ReturnCumulative with dividends | -47.5% | -4.2% |
| 10-Year ReturnCumulative with dividends | -0.4% | -24.0% |
| CAGR (3Y)Annualised 3-year return | -5.4% | -25.8% |
HCM leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
HCM leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
HCM is the less volatile stock with a 0.66 beta — it tends to amplify market swings less than LEGN's 0.76 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HCM currently trades 67.3% from its 52-week high vs LEGN's 62.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HCMHUTCHMED (China) … | LEGNLegend Biotech Co… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.66x | 0.76x |
| 52-Week HighHighest price in past year | $19.50 | $45.30 |
| 52-Week LowLowest price in past year | $12.91 | $16.24 |
| % of 52W HighCurrent price vs 52-week peak | +67.3% | +62.1% |
| RSI (14)Momentum oscillator 0–100 | 35.5 | 74.8 |
| Avg Volume (50D)Average daily shares traded | 31K | 1.9M |
HCM leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates HCM as "Buy" and LEGN as "Buy". Consensus price targets imply 105.9% upside for LEGN (target: $58) vs 33.3% for HCM (target: $18).
| Metric | HCMHUTCHMED (China) … | LEGNLegend Biotech Co… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $17.50 | $57.89 |
| # AnalystsCovering analysts | 10 | 19 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.6% | 0.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
HCM leads in 4 of 6 categories — strongest in Income & Cash Flow and Profitability & Efficiency. 1 category is tied.
Best OverallHUTCHMED (China) Limited (HCM)Leads 4 of 6 categories
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HCM vs LEGN: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is HCM or LEGN a better buy right now?
For growth investors, Legend Biotech Corporation (LEGN) is the stronger pick with 64.
5% revenue growth year-over-year, versus -24. 8% for HUTCHMED (China) Limited (HCM). HUTCHMED (China) Limited (HCM) offers the better valuation at 59. 7x trailing P/E (41. 1x forward), making it the more compelling value choice. Analysts rate HUTCHMED (China) Limited (HCM) a "Buy" — based on 10 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — HCM or LEGN?
On forward P/E, HUTCHMED (China) Limited is actually cheaper at 41.
1x.
03Which is the better long-term investment — HCM or LEGN?
Over the past 5 years, Legend Biotech Corporation (LEGN) delivered a total return of -4.
2%, compared to -47. 5% for HUTCHMED (China) Limited (HCM). Over 10 years, the gap is even starker: HCM returned -0. 4% versus LEGN's -24. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — HCM or LEGN?
By beta (market sensitivity over 5 years), HUTCHMED (China) Limited (HCM) is the lower-risk stock at 0.
66β versus Legend Biotech Corporation's 0. 76β — meaning LEGN is approximately 15% more volatile than HCM relative to the S&P 500. On balance sheet safety, HUTCHMED (China) Limited (HCM) carries a lower debt/equity ratio of 12% versus 41% for Legend Biotech Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — HCM or LEGN?
By revenue growth (latest reported year), Legend Biotech Corporation (LEGN) is pulling ahead at 64.
5% versus -24. 8% for HUTCHMED (China) Limited (HCM). On earnings-per-share growth, the picture is similar: HUTCHMED (China) Limited grew EPS -63. 3% year-over-year, compared to -66. 0% for Legend Biotech Corporation. Over a 3-year CAGR, LEGN leads at 106. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — HCM or LEGN?
HUTCHMED (China) Limited (HCM) is the more profitable company, earning 6.
0% net margin versus -28. 8% for Legend Biotech Corporation — meaning it keeps 6. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HCM leads at -6. 9% versus -13. 3% for LEGN. At the gross margin level — before operating expenses — LEGN leads at 60. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is HCM or LEGN more undervalued right now?
On forward earnings alone, HUTCHMED (China) Limited (HCM) trades at 41.
1x forward P/E versus 116. 2x for Legend Biotech Corporation — 75. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LEGN: 105. 9% to $57. 89.
08Which pays a better dividend — HCM or LEGN?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is HCM or LEGN better for a retirement portfolio?
For long-horizon retirement investors, HUTCHMED (China) Limited (HCM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
66)). Both have compounded well over 10 years (HCM: -0. 4%, LEGN: -24. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between HCM and LEGN?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: HCM is a small-cap quality compounder stock; LEGN is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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