Dr. Reddy’s Laboratories (NYSE: RDY) is one of 112 public companies in the “Pharmaceuticals” industry, but how does it weigh in compared to its competitors? We will compare Dr. Reddy’s Laboratories to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, profitability and valuation.
Earnings & Valuation
This table compares Dr. Reddy’s Laboratories and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Dr. Reddy’s Laboratories||$2.20 billion||$386.11 million||34.31|
|Dr. Reddy’s Laboratories Competitors||$7.88 billion||$2.51 billion||1.34|
Dr. Reddy’s Laboratories’ competitors have higher revenue and earnings than Dr. Reddy’s Laboratories. Dr. Reddy’s Laboratories is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Insider & Institutional Ownership
15.3% of Dr. Reddy’s Laboratories shares are owned by institutional investors. Comparatively, 44.2% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 2.0% of Dr. Reddy’s Laboratories shares are owned by insiders. Comparatively, 12.2% of shares of all “Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Dr. Reddy’s Laboratories and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dr. Reddy’s Laboratories||7.92%||9.27%||5.06%|
|Dr. Reddy’s Laboratories Competitors||-3,613.12%||-52.39%||-8.42%|
This is a breakdown of recent ratings and recommmendations for Dr. Reddy’s Laboratories and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dr. Reddy’s Laboratories||1||1||1||0||2.00|
|Dr. Reddy’s Laboratories Competitors||944||3787||6004||164||2.49|
Dr. Reddy’s Laboratories presently has a consensus target price of $31.62, suggesting a potential downside of 11.38%. As a group, “Pharmaceuticals” companies have a potential upside of 27.56%. Given Dr. Reddy’s Laboratories’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Dr. Reddy’s Laboratories has less favorable growth aspects than its competitors.
Dr. Reddy’s Laboratories pays an annual dividend of $0.29 per share and has a dividend yield of 0.8%. Dr. Reddy’s Laboratories pays out 27.9% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.4% and pay out 82.4% of their earnings in the form of a dividend.
Risk and Volatility
Dr. Reddy’s Laboratories has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Dr. Reddy’s Laboratories’ competitors have a beta of 0.86, indicating that their average stock price is 14% less volatile than the S&P 500.
Dr. Reddy’s Laboratories competitors beat Dr. Reddy’s Laboratories on 10 of the 15 factors compared.
Dr. Reddy’s Laboratories Company Profile
Dr. Reddy’s Laboratories Limited is a pharmaceutical company that is engaged in providing medicines. The Company operates in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The Global Generics segment includes manufacturing and marketing prescription and over-the-counter finished pharmaceutical products ready for consumption by the patient, marketed under a brand name (branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics). PSAI segment includes the Company’s business of manufacturing and marketing active pharmaceutical ingredients and intermediates (API) or bulk drugs. Proprietary Products segment focuses on the research, development and manufacture of differentiated formulations and new chemical entities. These products fall within the dermatology and neurology therapeutic areas, and are marketed and sold through its subsidiary, Promius Pharma, LLC.
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