Dr. Reddy's Laboratories Ltd (RDY) vs Teva Pharmaceutical Industries Ltd. (TEVA)

Dr. Reddy's Laboratories Ltd and Teva Pharmaceutical Industries Ltd. are both Drug Manufacturers Specialty & Generic companies. Teva Pharmaceutical Industries Ltd. is the larger, with a market value of $47.9B against $10.7B — 4.5× the size. Dr. Reddy's Laboratories Ltd trades at the lower P/E: 32.9× against 65.9×. Teva Pharmaceutical Industries Ltd. grew revenue faster over the last twelve months: 4.13% against −11.6%. Dr. Reddy's Laboratories Ltd has the higher net margin (9.81% vs 4.08%) and the higher return on invested capital (5.89% vs 4.58%). Across the 22 metrics below, Dr. Reddy's Laboratories Ltd leads on 14 and Teva Pharmaceutical Industries Ltd. on 8.

Valuation

Metric RDY TEVA Drug Manufacturers Specialty & Generic median
P/E 32.86 65.90 19.25
P/S 2.98 2.79 2.11
P/B 2.50 6.24 1.78
Price to free cash flow 73.54 34.53 16.14
EV/EBITDA 16.98 24.46 12.58
EV/Sales 2.94 3.54 2.73
Earnings yield 3.04% 1.52% (4.38%)
Free cash flow yield 1.36% 2.90% 0.00%

Profitability

Metric RDY TEVA Drug Manufacturers Specialty & Generic median
Gross margin 50.00% 52.46% 53.94%
Operating margin 10.91% 8.77% 0.00%
Net margin 9.81% 4.08% 0.00%
Free cash flow margin 4.05% 8.09% 0.00%
Return on equity 8.21% 9.69% (0.40%)
Return on assets 5.55% 1.77% (3.32%)
Return on invested capital 5.89% 4.58% 0.00%

Growth

Metric RDY TEVA Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (11.60%) 4.13% 10.01%
EPS growth (last fiscal year) (30.38%) 183.45% 49.06%
Revenue growth, 5-year CAGR 6.66% 0.71% 6.74%
Net income growth, 5-year CAGR 14.08% 0.00% 0.00%

Health

Metric RDY TEVA Drug Manufacturers Specialty & Generic median
Debt to equity 0.19 2.14 0.05
Current ratio 1.90 0.88 2.31
Net debt to EBITDA (0.15) 4.19 0.97

Dividend

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

Size

Metric RDY TEVA Drug Manufacturers Specialty & Generic median
Market cap 10.74b 47.91b 276.90m

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