Alkermes plc (ALKS) vs Dr. Reddy's Laboratories Ltd (RDY)

Alkermes plc and Dr. Reddy's Laboratories Ltd are both Drug Manufacturers Specialty & Generic companies. Dr. Reddy's Laboratories Ltd is the larger, with a market value of $10.7B against $6.7B — 1.6× the size. Dr. Reddy's Laboratories Ltd trades at the lower P/E: 32.9× against 102×. Alkermes plc grew revenue faster over the last twelve months: 10.8% against −11.6%. Dr. Reddy's Laboratories Ltd has the higher net margin (9.81% vs 3.97%) and the higher return on invested capital (5.89% vs 2.76%). Across the 22 metrics below, Dr. Reddy's Laboratories Ltd leads on 14 and Alkermes plc on 8.

Valuation

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
P/E 102.28 32.86 19.25
P/S 4.13 2.98 2.11
P/B 3.81 2.50 1.78
Price to free cash flow 30.91 73.54 16.14
EV/EBITDA 34.73 16.98 12.58
EV/Sales 4.64 2.94 2.73
Earnings yield 0.98% 3.04% (4.38%)
Free cash flow yield 3.23% 1.36% 0.00%

Profitability

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Gross margin 84.56% 50.00% 53.94%
Operating margin 7.03% 10.91% 0.00%
Net margin 3.97% 9.81% 0.00%
Free cash flow margin 13.35% 4.05% 0.00%
Return on equity 3.85% 8.21% (0.40%)
Return on assets 1.99% 5.55% (3.32%)
Return on invested capital 2.76% 5.89% 0.00%

Growth

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 10.79% (11.60%) 10.01%
EPS growth (last fiscal year) (34.10%) (30.38%) 49.06%
Revenue growth, 5-year CAGR 7.28% 6.66% 6.74%
Net income growth, 5-year CAGR 0.00% 14.08% 0.00%

Health

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Debt to equity 0.83 0.19 0.05
Current ratio 2.30 1.90 2.31
Net debt to EBITDA (4.69) (0.15) 0.97

Dividend

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Dividend yield — 0.00% 1.57%
Payout ratio — 0.00 0.27

Size

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Market cap 6.73b 10.74b 276.90m

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