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 and Dr. Reddy's Laboratories Ltd are of similar size ($12.1B and $11.8B). Elanco Animal Health Incorporated has negative trailing earnings, so its P/E is not meaningful; Dr. Reddy's Laboratories Ltd trades at 44.4×. Elanco Animal Health Incorporated grew revenue faster over the last twelve months: 12.0% against −15.5%. Dr. Reddy's Laboratories Ltd has the higher net margin (8.06% vs −3.96%) and the higher return on invested capital (4.77% vs 0.51%). Across the 21 metrics below, Elanco Animal Health Incorporated leads on 11 and Dr. Reddy's Laboratories Ltd on 10.

Valuation

Metric ELAN RDY Drug Manufacturers Specialty & Generic median
P/E n/m 44.42 20.55
P/S 2.36 3.63 2.08
P/B 1.80 2.98 1.79
Price to free cash flow 33.22 126.01 16.29
EV/EBITDA 19.70 22.88 12.22
EV/Sales 3.04 3.61 2.87
Earnings yield (1.73%) 2.25% (15.94%)
Free cash flow yield 3.01% 0.79% 0.00%

Profitability

Metric ELAN RDY Drug Manufacturers Specialty & Generic median
Gross margin 55.36% 49.16% 53.51%
Operating margin 1.61% 9.20% 0.00%
Net margin (3.96%) 8.06% (2.45%)
Free cash flow margin 7.55% 2.88% 0.00%
Return on equity (2.98%) 6.60% (0.80%)
Return on assets (1.46%) 4.44% (1.67%)
Return on invested capital 0.51% 4.77% 0.00%

Growth

Metric ELAN RDY Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 11.95% (15.51%) 5.22%
EPS growth (last fiscal year) (169.12%) (30.38%) 42.91%
Revenue growth, 5-year CAGR 7.59% 6.66% 7.24%
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 0.04
Current ratio 2.05 1.93 2.41
Net debt to EBITDA 5.00 (0.15) 1.01

Dividend

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

Size

Metric ELAN RDY Drug Manufacturers Specialty & Generic median
Market cap 11.83b 12.10b 315.39m

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