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 $48.7B against $12.1B — 4.0× the size. Dr. Reddy's Laboratories Ltd trades at the lower P/E: 44.4× against 92.6×. Teva Pharmaceutical Industries Ltd. grew revenue faster over the last twelve months: 2.71% against −15.5%. Dr. Reddy's Laboratories Ltd has the higher net margin (8.06% vs 2.94%) and the higher return on invested capital (4.77% vs 4.09%). Across the 22 metrics below, Dr. Reddy's Laboratories Ltd leads on 13 and Teva Pharmaceutical Industries Ltd. on 9.

Valuation

Metric RDY TEVA Drug Manufacturers Specialty & Generic median
P/E 44.42 92.59 20.55
P/S 3.63 2.82 2.08
P/B 2.98 6.09 1.79
Price to free cash flow 126.01 36.64 16.29
EV/EBITDA 22.88 26.25 12.22
EV/Sales 3.61 3.56 2.87
Earnings yield 2.25% 1.08% (15.94%)
Free cash flow yield 0.79% 2.73% 0.00%

Profitability

Metric RDY TEVA Drug Manufacturers Specialty & Generic median
Gross margin 49.16% 53.51% 53.51%
Operating margin 9.20% 7.84% 0.00%
Net margin 8.06% 2.94% (2.45%)
Free cash flow margin 2.88% 7.71% 0.00%
Return on equity 6.60% 6.65% (0.80%)
Return on assets 4.44% 1.27% (1.67%)
Return on invested capital 4.77% 4.09% 0.00%

Growth

Metric RDY TEVA Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (15.51%) 2.71% 5.22%
EPS growth (last fiscal year) (30.38%) 183.45% 42.91%
Revenue growth, 5-year CAGR 6.66% 0.71% 7.24%
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 2.09 0.04
Current ratio 1.93 0.95 2.41
Net debt to EBITDA (0.15) 4.19 1.01

Dividend

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

Size

Metric RDY TEVA Drug Manufacturers Specialty & Generic median
Market cap 12.10b 48.69b 315.39m

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