Dr. Reddy's Laboratories Ltd (RDY) vs Takeda Pharmaceutical Co. (TAK)

Dr. Reddy's Laboratories Ltd and Takeda Pharmaceutical Co. are both Drug Manufacturers Specialty & Generic companies. Takeda Pharmaceutical Co. is the larger, with a market value of $59.2B against $10.0B — 5.9× the size. Takeda Pharmaceutical Co. trades at the lower P/E: 28.4× against 30.8×. Takeda Pharmaceutical Co. grew revenue faster over the last twelve months: 0.66% against −11.6%. Dr. Reddy's Laboratories Ltd has the higher net margin (9.81% vs 7.12%) and the higher return on invested capital (5.89% vs 2.88%). Both pay a dividend; Takeda Pharmaceutical Co. yields more (4.52% vs 0.66%). Across the 23 metrics below, Takeda Pharmaceutical Co. leads on 12 and Dr. Reddy's Laboratories Ltd on 11.

Valuation

Metric RDY TAK Drug Manufacturers Specialty & Generic median
P/E 30.85 28.36 20.14
P/S 2.79 1.99 2.25
P/B 2.35 1.25 1.90
Price to free cash flow 69.03 8.03 16.54
EV/EBITDA 15.92 10.48 12.29
EV/Sales 2.76 2.91 2.56
Earnings yield 3.24% 3.53% (2.99%)
Free cash flow yield 1.45% 12.46% 0.00%

Profitability

Metric RDY TAK Drug Manufacturers Specialty & Generic median
Gross margin 50.00% 65.85% 53.94%
Operating margin 10.91% 11.61% 0.00%
Net margin 9.81% 7.12% 0.00%
Free cash flow margin 4.05% 24.74% 0.00%
Return on equity 8.21% 4.42% (0.40%)
Return on assets 5.55% 2.15% (3.32%)
Return on invested capital 5.89% 2.88% 0.00%

Growth

Metric RDY TAK Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (11.60%) 0.66% 10.01%
EPS growth (last fiscal year) (30.38%) (244.86%) —
Revenue growth, 5-year CAGR 6.66% (0.21%) 6.74%
Net income growth, 5-year CAGR 14.08% 0.00% 0.00%

Health

Metric RDY TAK Drug Manufacturers Specialty & Generic median
Debt to equity 0.19 0.65 0.05
Current ratio 1.90 1.14 2.31
Net debt to EBITDA (0.15) 5.84 0.85

Dividend

Metric RDY TAK Drug Manufacturers Specialty & Generic median
Dividend yield 0.66% 4.52% 1.70%
Payout ratio 0.14 0.50 0.00

Size

Metric RDY TAK Drug Manufacturers Specialty & Generic median
Market cap 10.02b 59.16b 337.35m

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