Dr. Reddy's Laboratories Ltd (RDY) vs United Therapeutics Corporation (UTHR)

Dr. Reddy's Laboratories Ltd and United Therapeutics Corporation are both Drug Manufacturers Specialty & Generic companies. United Therapeutics Corporation is the larger, with a market value of $24.3B against $12.1B — 2.0× the size. United Therapeutics Corporation trades at the lower P/E: 19.7× against 44.4×. United Therapeutics Corporation grew revenue faster over the last twelve months: 1.89% against −15.5%. United Therapeutics Corporation has the higher net margin (38.6% vs 8.06%) and the higher return on invested capital (30.1% vs 4.77%). Across the 22 metrics below, United Therapeutics Corporation leads on 19 and Dr. Reddy's Laboratories Ltd on 3.

Valuation

Metric RDY UTHR Drug Manufacturers Specialty & Generic median
P/E 44.42 19.75 20.55
P/S 3.63 7.57 2.08
P/B 2.98 3.77 1.79
Price to free cash flow 126.01 27.99 16.29
EV/EBITDA 22.88 14.74 12.22
EV/Sales 3.61 6.55 2.87
Earnings yield 2.25% 5.06% (15.94%)
Free cash flow yield 0.79% 3.57% 0.00%

Profitability

Metric RDY UTHR Drug Manufacturers Specialty & Generic median
Gross margin 49.16% 86.34% 53.51%
Operating margin 9.20% 41.45% 0.00%
Net margin 8.06% 38.61% (2.45%)
Free cash flow margin 2.88% 27.21% 0.00%
Return on equity 6.60% 19.13% (0.80%)
Return on assets 4.44% 17.11% (1.67%)
Return on invested capital 4.77% 30.13% 0.00%

Growth

Metric RDY UTHR Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (15.51%) 1.89% 5.22%
EPS growth (last fiscal year) (30.38%) 13.07% 42.91%
Revenue growth, 5-year CAGR 6.66% 16.50% 7.24%
Net income growth, 5-year CAGR 14.08% 20.99% 0.00%

Health

Metric RDY UTHR Drug Manufacturers Specialty & Generic median
Debt to equity 0.19 0.00 0.04
Current ratio 1.93 4.66 2.41
Net debt to EBITDA (0.15) (1.85) 1.01

Dividend

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

Size

Metric RDY UTHR Drug Manufacturers Specialty & Generic median
Market cap 12.10b 24.26b 315.39m

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