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 $10.0B against $6.8B — 1.5× the size. Dr. Reddy's Laboratories Ltd trades at the lower P/E: 30.8× against 101×. 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 101.36 30.85 20.14
P/S 4.09 2.79 2.25
P/B 3.77 2.35 1.90
Price to free cash flow 30.64 69.03 16.54
EV/EBITDA 34.45 15.92 12.29
EV/Sales 4.60 2.76 2.56
Earnings yield 0.99% 3.24% (2.99%)
Free cash flow yield 3.26% 1.45% 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%) —
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) 0.85

Dividend

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Dividend yield — 0.66% 1.70%
Payout ratio 0.00 0.14 0.00

Size

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Market cap 6.78b 10.02b 337.35m

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