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 $43.7B against $10.7B — 4.1× the size. Haleon PLC Sponsored ADR trades at the lower P/E: 22.6× against 32.9×. 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%). Only Haleon PLC Sponsored ADR pays a dividend (1.95%). 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 22.58 32.86 19.25
P/S 2.57 2.98 2.11
P/B 2.11 2.50 1.78
Price to free cash flow 10.24 73.54 16.14
EV/EBITDA 13.30 16.98 12.58
EV/Sales 3.12 2.94 2.73
Earnings yield 4.43% 3.04% (4.38%)
Free cash flow yield 9.77% 1.36% 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%) 49.06%
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) 0.97

Dividend

Metric HLN RDY Drug Manufacturers Specialty & Generic median
Dividend yield 1.95% 0.00% 1.57%
Payout ratio — 0.00 0.27

Size

Metric HLN RDY Drug Manufacturers Specialty & Generic median
Market cap 43.71b 10.74b 276.90m

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