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 $67.7B against $12.1B — 5.6× the size. Takeda Pharmaceutical Co. trades at the lower P/E: 32.0× against 44.4×. Takeda Pharmaceutical Co. grew revenue faster over the last twelve months: 0.66% against −15.5%. Dr. Reddy's Laboratories Ltd has the higher net margin (8.06% vs 7.12%) and the higher return on invested capital (4.77% vs 0.00%). Only Takeda Pharmaceutical Co. pays a dividend (1.45%). 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 44.42 31.97 20.55
P/S 3.63 2.24 2.08
P/B 2.98 1.44 1.79
Price to free cash flow 126.01 8.42 16.29
EV/EBITDA 22.88 11.17 12.22
EV/Sales 3.61 3.10 2.87
Earnings yield 2.25% 3.13% (15.94%)
Free cash flow yield 0.79% 11.88% 0.00%

Profitability

Metric RDY TAK Drug Manufacturers Specialty & Generic median
Gross margin 49.16% 65.85% 53.51%
Operating margin 9.20% 11.61% 0.00%
Net margin 8.06% 7.12% (2.45%)
Free cash flow margin 2.88% 0.00% 0.00%
Return on equity 6.60% 0.00% (0.80%)
Return on assets 4.44% 0.00% (1.67%)
Return on invested capital 4.77% 0.00% 0.00%

Growth

Metric RDY TAK Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (15.51%) 0.66% 5.22%
EPS growth (last fiscal year) (30.38%) (244.86%) 42.91%
Revenue growth, 5-year CAGR 6.66% (0.21%) 7.24%
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 0.62 0.04
Current ratio 1.93 1.15 2.41
Net debt to EBITDA (0.15) 5.84 1.01

Dividend

Metric RDY TAK Drug Manufacturers Specialty & Generic median
Dividend yield 0.00% 1.45% 1.45%
Payout ratio 0.00 0.46 0.27

Size

Metric RDY TAK Drug Manufacturers Specialty & Generic median
Market cap 12.10b 67.70b 315.39m

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