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 $20.0B against $10.0B — 2.0× the size. Viatris Inc. has negative trailing earnings, so its P/E is not meaningful; Dr. Reddy's Laboratories Ltd trades at 30.8×. 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%). Both pay a dividend; Viatris Inc. yields more (4.15% vs 0.66%). 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 30.85 n/m 20.14
P/S 2.79 1.41 2.25
P/B 2.35 1.45 1.90
Price to free cash flow 69.03 10.97 16.54
EV/EBITDA 15.92 12.22 12.29
EV/Sales 2.76 2.25 2.56
Earnings yield 3.24% (2.02%) (2.99%)
Free cash flow yield 1.45% 9.11% 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%) —
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 0.85

Dividend

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Dividend yield 0.66% 4.15% 1.70%
Payout ratio 0.14 0.31 0.00

Size

Metric RDY VTRS Drug Manufacturers Specialty & Generic median
Market cap 10.02b 19.99b 337.35m

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