Dr. Reddy's Laboratories Ltd (RDY) vs Zoetis Inc. (ZTS)

Dr. Reddy's Laboratories Ltd and Zoetis Inc. are both Drug Manufacturers Specialty & Generic companies. Zoetis Inc. is the larger, with a market value of $33.9B against $12.1B — 2.8× the size. Zoetis Inc. trades at the lower P/E: 13.4× against 44.4×. Zoetis Inc. grew revenue faster over the last twelve months: 1.58% against −15.5%. Zoetis Inc. has the higher net margin (27.7% vs 8.06%) and the higher return on invested capital (19.6% vs 4.77%). Only Zoetis Inc. pays a dividend (2.59%). Across the 23 metrics below, Zoetis Inc. leads on 18 and Dr. Reddy's Laboratories Ltd on 5.

Valuation

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
P/E 44.42 13.44 20.55
P/S 3.63 3.58 2.08
P/B 2.98 10.84 1.79
Price to free cash flow 126.01 14.67 16.29
EV/EBITDA 22.88 10.66 12.22
EV/Sales 3.61 4.50 2.87
Earnings yield 2.25% 7.44% (15.94%)
Free cash flow yield 0.79% 6.82% 0.00%

Profitability

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
Gross margin 49.16% 71.67% 53.51%
Operating margin 9.20% 37.13% 0.00%
Net margin 8.06% 27.69% (2.45%)
Free cash flow margin 2.88% 24.43% 0.00%
Return on equity 6.60% 64.91% (0.80%)
Return on assets 4.44% 17.84% (1.67%)
Return on invested capital 4.77% 19.60% 0.00%

Growth

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (15.51%) 1.58% 5.22%
EPS growth (last fiscal year) (30.38%) 10.05% 42.91%
Revenue growth, 5-year CAGR 6.66% 7.24% 7.24%
Net income growth, 5-year CAGR 14.08% 10.29% 0.00%

Health

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 0.19 2.87 0.04
Current ratio 1.93 3.08 2.41
Net debt to EBITDA (0.15) 1.65 1.01

Dividend

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 0.00% 2.59% 1.45%
Payout ratio 0.00 0.35 0.27

Size

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
Market cap 12.10b 33.93b 315.39m

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