Haleon PLC Sponsored ADR (HLN) vs Dr. Reddy's Laboratories Ltd (RDY)

Haleon PLC Sponsored ADR and Dr. Reddy's Laboratories Ltd are both Drug Manufacturers Specialty & Generic companies. Haleon PLC Sponsored ADR is the larger, with a market value of $40.3B against $10.0B — 4.0× the size. Haleon PLC Sponsored ADR trades at the lower P/E: 20.6× against 30.8×. Haleon PLC Sponsored ADR has the higher net margin (13.8% vs 9.81%) and the lower return on invested capital (0.00% vs 5.89%). Both pay a dividend; Haleon PLC Sponsored ADR yields more (1.70% vs 0.66%). Across the 22 metrics below, Haleon PLC Sponsored ADR leads on 12 and Dr. Reddy's Laboratories Ltd on 10.

Valuation

Metric HLN RDY Drug Manufacturers Specialty & Generic median
P/E 20.64 30.85 20.14
P/S 2.35 2.79 2.25
P/B 1.93 2.35 1.90
Price to free cash flow 9.36 69.03 16.54
EV/EBITDA 12.36 15.92 12.29
EV/Sales 2.90 2.76 2.56
Earnings yield 4.84% 3.24% (2.99%)
Free cash flow yield 10.68% 1.45% 0.00%

Profitability

Metric HLN RDY Drug Manufacturers Specialty & Generic median
Gross margin 62.22% 50.00% 53.94%
Operating margin 17.93% 10.91% 0.00%
Net margin 13.79% 9.81% 0.00%
Free cash flow margin 0.00% 4.05% 0.00%
Return on equity 0.00% 8.21% (0.40%)
Return on assets 0.00% 5.55% (3.32%)
Return on invested capital 0.00% 5.89% 0.00%

Growth

Metric HLN RDY Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) — (11.60%) 10.01%
EPS growth (last fiscal year) 22.50% (30.38%) —
Revenue growth, 5-year CAGR 1.43% 6.66% 6.74%
Net income growth, 5-year CAGR 6.98% 14.08% 0.00%

Health

Metric HLN RDY Drug Manufacturers Specialty & Generic median
Debt to equity 0.50 0.19 0.05
Current ratio 0.69 1.90 2.31
Net debt to EBITDA 2.63 (0.15) 0.85

Dividend

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

Size

Metric HLN RDY Drug Manufacturers Specialty & Generic median
Market cap 40.28b 10.02b 337.35m

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