Elanco Animal Health Incorporated (ELAN) vs Dr. Reddy's Laboratories Ltd (RDY)

Elanco Animal Health Incorporated and Dr. Reddy's Laboratories Ltd are both Drug Manufacturers Specialty & Generic companies. Elanco Animal Health Incorporated is the larger, with a market value of $11.2B against $10.0B — 1.1× the size. Elanco Animal Health Incorporated has negative trailing earnings, so its P/E is not meaningful; Dr. Reddy's Laboratories Ltd trades at 30.8×. Elanco Animal Health Incorporated grew revenue faster over the last twelve months: 12.0% against −11.6%. Dr. Reddy's Laboratories Ltd has the higher net margin (9.81% vs −3.96%) and the higher return on invested capital (5.89% vs 0.51%). Across the 21 metrics below, Dr. Reddy's Laboratories Ltd leads on 12 and Elanco Animal Health Incorporated on 9.

Valuation

Metric ELAN RDY Drug Manufacturers Specialty & Generic median
P/E n/m 30.85 20.14
P/S 2.22 2.79 2.25
P/B 1.69 2.35 1.90
Price to free cash flow 31.22 69.03 16.54
EV/EBITDA 18.78 15.92 12.29
EV/Sales 2.89 2.76 2.56
Earnings yield (1.84%) 3.24% (2.99%)
Free cash flow yield 3.20% 1.45% 0.00%

Profitability

Metric ELAN RDY Drug Manufacturers Specialty & Generic median
Gross margin 55.36% 50.00% 53.94%
Operating margin 1.61% 10.91% 0.00%
Net margin (3.96%) 9.81% 0.00%
Free cash flow margin 7.55% 4.05% 0.00%
Return on equity (2.98%) 8.21% (0.40%)
Return on assets (1.46%) 5.55% (3.32%)
Return on invested capital 0.51% 5.89% 0.00%

Growth

Metric ELAN RDY Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 11.95% (11.60%) 10.01%
EPS growth (last fiscal year) (169.12%) (30.38%) —
Revenue growth, 5-year CAGR 7.59% 6.66% 6.74%
Net income growth, 5-year CAGR 0.00% 14.08% 0.00%

Health

Metric ELAN RDY Drug Manufacturers Specialty & Generic median
Debt to equity 0.59 0.19 0.05
Current ratio 2.05 1.90 2.31
Net debt to EBITDA 5.00 (0.15) 0.85

Dividend

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

Size

Metric ELAN RDY Drug Manufacturers Specialty & Generic median
Market cap 11.21b 10.02b 337.35m

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