Dr. Reddy's Laboratories Ltd (RDY) vs Viatris Inc. (VTRS)

Dr. Reddy's Laboratories Ltd and Viatris Inc. are both Drug Manufacturers Specialty & Generic companies. Viatris Inc. is the larger, with a market value of $20.9B against $10.7B — 1.9× the size. Viatris Inc. has negative trailing earnings, so its P/E is not meaningful; Dr. Reddy's Laboratories Ltd trades at 32.9×. Viatris Inc. grew revenue faster over the last twelve months: 4.40% against −11.6%. Dr. Reddy's Laboratories Ltd has the higher net margin (9.81% vs −2.79%) and the higher return on invested capital (5.89% vs −0.20%). Only Viatris Inc. pays a dividend (2.57%). Across the 22 metrics below, Dr. Reddy's Laboratories Ltd leads on 13 and Viatris Inc. on 9.

Valuation

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
P/E 32.86 n/m 19.25
P/S 2.98 1.47 2.11
P/B 2.50 1.52 1.78
Price to free cash flow 73.54 11.48 16.14
EV/EBITDA 16.98 12.58 12.58
EV/Sales 2.94 2.32 2.73
Earnings yield 3.04% (1.93%) (4.38%)
Free cash flow yield 1.36% 8.71% 0.00%

Profitability

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Gross margin 50.00% 34.83% 53.94%
Operating margin 10.91% (0.59%) 0.00%
Net margin 9.81% (2.79%) 0.00%
Free cash flow margin 4.05% 12.83% 0.00%
Return on equity 8.21% (2.75%) (0.40%)
Return on assets 5.55% (1.12%) (3.32%)
Return on invested capital 5.89% (0.20%) 0.00%

Growth

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (11.60%) 4.40% 10.01%
EPS growth (last fiscal year) (30.38%) (466.04%) 49.06%
Revenue growth, 5-year CAGR 6.66% 3.66% 6.74%
Net income growth, 5-year CAGR 14.08% 0.00% 0.00%

Health

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Debt to equity 0.19 0.94 0.05
Current ratio 1.90 1.58 2.31
Net debt to EBITDA (0.15) 4.92 0.97

Dividend

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Dividend yield 0.00% 2.57% 1.57%
Payout ratio 0.00 — 0.27

Size

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Market cap 10.74b 20.93b 276.90m

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