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 $32.4B against $10.7B — 3.0× the size. Zoetis Inc. trades at the lower P/E: 13.0× against 32.9×. Zoetis Inc. grew revenue faster over the last twelve months: 1.58% against −11.6%. Zoetis Inc. has the higher net margin (27.7% vs 9.81%) and the higher return on invested capital (19.6% vs 5.89%). Only Zoetis Inc. pays a dividend (2.64%). Across the 23 metrics below, Zoetis Inc. leads on 17 and Dr. Reddy's Laboratories Ltd on 6.

Valuation

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
P/E 32.86 13.03 19.25
P/S 2.98 3.47 2.11
P/B 2.50 10.51 1.78
Price to free cash flow 73.54 14.21 16.14
EV/EBITDA 16.98 10.40 12.58
EV/Sales 2.94 4.39 2.73
Earnings yield 3.04% 7.68% (4.38%)
Free cash flow yield 1.36% 7.04% 0.00%

Profitability

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
Gross margin 50.00% 71.67% 53.94%
Operating margin 10.91% 37.13% 0.00%
Net margin 9.81% 27.69% 0.00%
Free cash flow margin 4.05% 24.43% 0.00%
Return on equity 8.21% 64.91% (0.40%)
Return on assets 5.55% 17.84% (3.32%)
Return on invested capital 5.89% 19.60% 0.00%

Growth

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (11.60%) 1.58% 10.01%
EPS growth (last fiscal year) (30.38%) 10.05% 49.06%
Revenue growth, 5-year CAGR 6.66% 7.24% 6.74%
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 0.05
Current ratio 1.90 3.08 2.31
Net debt to EBITDA (0.15) 1.65 0.97

Dividend

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 0.00% 2.64% 1.57%
Payout ratio 0.00 0.34 0.27

Size

Metric RDY ZTS Drug Manufacturers Specialty & Generic median
Market cap 10.74b 32.40b 276.90m

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