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 $12.1B against $7.5B — 1.6× the size. Alkermes plc has negative trailing earnings, so its P/E is not meaningful; Dr. Reddy's Laboratories Ltd trades at 44.4×. Alkermes plc grew revenue faster over the last twelve months: 15.3% against −15.5%. Dr. Reddy's Laboratories Ltd has the higher net margin (8.06% vs −0.02%) and the higher return on invested capital (4.77% vs 1.54%). Across the 21 metrics below, Dr. Reddy's Laboratories Ltd leads on 13 and Alkermes plc on 8.

Valuation

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
P/E n/m 44.42 20.55
P/S 4.27 3.63 2.08
P/B 4.02 2.98 1.79
Price to free cash flow 32.78 126.01 16.29
EV/EBITDA 37.88 22.88 12.22
EV/Sales 4.69 3.61 2.87
Earnings yield 0.00% 2.25% (15.94%)
Free cash flow yield 3.05% 0.79% 0.00%

Profitability

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Gross margin 82.89% 49.16% 53.51%
Operating margin 3.66% 9.20% 0.00%
Net margin (0.02%) 8.06% (2.45%)
Free cash flow margin 13.03% 2.88% 0.00%
Return on equity (0.02%) 6.60% (0.80%)
Return on assets (0.01%) 4.44% (1.67%)
Return on invested capital 1.54% 4.77% 0.00%

Growth

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 15.27% (15.51%) 5.22%
EPS growth (last fiscal year) (34.10%) (30.38%) 42.91%
Revenue growth, 5-year CAGR 7.28% 6.66% 7.24%
Net income growth, 5-year CAGR 0.00% 14.08% 0.00%

Health

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Debt to equity 0.80 0.19 0.04
Current ratio 2.42 1.93 2.41
Net debt to EBITDA (4.69) (0.15) 1.01

Dividend

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Dividend yield — 0.00% 1.45%
Payout ratio — 0.00 0.27

Size

Metric ALKS RDY Drug Manufacturers Specialty & Generic median
Market cap 7.48b 12.10b 315.39m

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