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 $21.8B against $12.1B — 1.8× the size. Viatris Inc. has negative trailing earnings, so its P/E is not meaningful; Dr. Reddy's Laboratories Ltd trades at 44.4×. Viatris Inc. grew revenue faster over the last twelve months: 4.27% against −15.5%. Dr. Reddy's Laboratories Ltd has the higher net margin (8.06% vs −4.13%) and the higher return on invested capital (4.77% vs −0.02%). Only Viatris Inc. pays a dividend (2.54%). Across the 22 metrics below, Dr. Reddy's Laboratories Ltd leads on 12 and Viatris Inc. on 10.

Valuation

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
P/E 44.42 n/m 20.55
P/S 3.63 1.49 2.08
P/B 2.98 1.61 1.79
Price to free cash flow 126.01 10.69 16.29
EV/EBITDA 22.88 12.34 12.22
EV/Sales 3.61 2.28 2.87
Earnings yield 2.25% (2.81%) (15.94%)
Free cash flow yield 0.79% 9.35% 0.00%

Profitability

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Gross margin 49.16% 35.31% 53.51%
Operating margin 9.20% (0.03%) 0.00%
Net margin 8.06% (4.13%) (2.45%)
Free cash flow margin 2.88% 16.27% 0.00%
Return on equity 6.60% (4.21%) (0.80%)
Return on assets 4.44% (1.67%) (1.67%)
Return on invested capital 4.77% (0.02%) 0.00%

Growth

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (15.51%) 4.27% 5.22%
EPS growth (last fiscal year) (30.38%) (466.04%) 42.91%
Revenue growth, 5-year CAGR 6.66% 3.66% 7.24%
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 0.13 0.04
Current ratio 1.93 1.55 2.41
Net debt to EBITDA (0.15) 4.92 1.01

Dividend

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Dividend yield 0.00% 2.54% 1.45%
Payout ratio 0.00 — 0.27

Size

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Market cap 12.10b 21.79b 315.39m

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