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 $20.3B against $10.0B — 2.0× the size. United Therapeutics Corporation trades at the lower P/E: 15.7× against 30.8×. United Therapeutics Corporation grew revenue faster over the last twelve months: 2.49% against −11.6%. United Therapeutics Corporation has the higher net margin (41.6% vs 9.81%) and the higher return on invested capital (23.4% vs 5.89%). 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 30.85 15.70 20.14
P/S 2.79 6.42 2.25
P/B 2.35 3.16 1.90
Price to free cash flow 69.03 18.62 16.54
EV/EBITDA 15.92 11.98 12.29
EV/Sales 2.76 5.67 2.56
Earnings yield 3.24% 6.37% (2.99%)
Free cash flow yield 1.45% 5.37% 0.00%

Profitability

Metric RDY UTHR Drug Manufacturers Specialty & Generic median
Gross margin 50.00% 86.14% 53.94%
Operating margin 10.91% 44.44% 0.00%
Net margin 9.81% 41.56% 0.00%
Free cash flow margin 4.05% 34.65% 0.00%
Return on equity 8.21% 19.32% (0.40%)
Return on assets 5.55% 17.33% (3.32%)
Return on invested capital 5.89% 23.44% 0.00%

Growth

Metric RDY UTHR Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (11.60%) 2.49% 10.01%
EPS growth (last fiscal year) (30.38%) 13.07% —
Revenue growth, 5-year CAGR 6.66% 16.50% 6.74%
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 0.05
Current ratio 1.90 5.73 2.31
Net debt to EBITDA (0.15) (1.85) 0.85

Dividend

Metric RDY UTHR Drug Manufacturers Specialty & Generic median
Dividend yield 0.66% — 1.70%
Payout ratio 0.14 0.00 0.00

Size

Metric RDY UTHR Drug Manufacturers Specialty & Generic median
Market cap 10.02b 20.25b 337.35m

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