Drug Manufacturers - Specialty & Generic
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RDY vs PRGO
Revenue, margins, valuation, and 5-year total return — side by side.
Drug Manufacturers - Specialty & Generic
RDY vs PRGO — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Drug Manufacturers - Specialty & Generic | Drug Manufacturers - Specialty & Generic |
| Market Cap | $11.19B | $1.61B |
| Revenue (TTM) | $345.83B | $4.18B |
| Net Income (TTM) | $56.59B | $-1.82B |
| Gross Margin | 55.2% | 34.2% |
| Operating Margin | 19.3% | -4.1% |
| Forward P/E | 0.2x | 5.6x |
| Total Debt | $46.77B | $3.97B |
| Cash & Equiv. | $14.65B | $532M |
RDY vs PRGO — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Dr. Reddy's Laborat… (RDY) | 100 | 125.8 | +25.8% |
| Perrigo Company plc (PRGO) | 100 | 21.4 | -78.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RDY vs PRGO
Each card shows where this stock fits in a portfolio — not just who wins on paper.
RDY carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 16.6%, EPS growth 1.5%, 3Y rev CAGR 14.9%
- 66.4% 10Y total return vs PRGO's -77.7%
- Lower volatility, beta 0.46, Low D/E 13.9%, current ratio 1.92x
PRGO is the clearest fit if your priority is income & stability and defensive.
- Dividend streak 10 yrs, beta 1.18, yield 9.8%
- Beta 1.18, yield 9.8%, current ratio 2.76x
- 9.8% yield, 10-year raise streak, vs RDY's 0.6%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 16.6% revenue growth vs PRGO's -2.8% | |
| Value | Lower P/E (0.2x vs 5.6x) | |
| Quality / Margins | 16.4% margin vs PRGO's -43.5% | |
| Stability / Safety | Beta 0.46 vs PRGO's 1.18, lower leverage | |
| Dividends | 9.8% yield, 10-year raise streak, vs RDY's 0.6% | |
| Momentum (1Y) | +0.1% vs PRGO's -51.2% | |
| Efficiency (ROA) | 10.1% ROA vs PRGO's -19.8%, ROIC 16.3% vs 3.7% |
RDY vs PRGO — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
RDY vs PRGO — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
RDY leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
RDY is the larger business by revenue, generating $345.8B annually — 82.8x PRGO's $4.2B. RDY is the more profitable business, keeping 16.4% of every revenue dollar as net income compared to PRGO's -43.5%. On growth, RDY holds the edge at +4.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $345.8B | $4.2B |
| EBITDAEarnings before interest/tax | $86.3B | $58M |
| Net IncomeAfter-tax profit | $56.6B | -$1.8B |
| Free Cash FlowCash after capex | $24.3B | $108M |
| Gross MarginGross profit ÷ Revenue | +55.2% | +34.2% |
| Operating MarginEBIT ÷ Revenue | +19.3% | -4.1% |
| Net MarginNet income ÷ Revenue | +16.4% | -43.5% |
| FCF MarginFCF ÷ Revenue | +7.0% | +2.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.4% | -7.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -14.3% | -56.4% |
Valuation Metrics
PRGO leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
On an enterprise value basis, PRGO's 7.4x EV/EBITDA is more attractive than RDY's 12.3x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $11.2B | $1.6B |
| Enterprise ValueMkt cap + debt − cash | $11.5B | $5.1B |
| Trailing P/EPrice ÷ TTM EPS | 18.82x | -1.14x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.22x | 5.56x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 12.31x | 7.42x |
| Price / SalesMarket cap ÷ Revenue | 3.26x | 0.38x |
| Price / BookPrice ÷ Book value/share | 3.16x | 0.55x |
| Price / FCFMarket cap ÷ FCF | 88.28x | 11.12x |
Profitability & Efficiency
RDY leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
RDY delivers a 15.1% return on equity — every $100 of shareholder capital generates $15 in annual profit, vs $-51 for PRGO. RDY carries lower financial leverage with a 0.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to PRGO's 1.35x. On the Piotroski fundamental quality scale (0–9), PRGO scores 4/9 vs RDY's 2/9, reflecting mixed financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +15.1% | -50.7% |
| ROA (TTM)Return on assets | +10.1% | -19.8% |
| ROICReturn on invested capital | +16.3% | +3.7% |
| ROCEReturn on capital employed | +22.0% | +4.3% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 4 |
| Debt / EquityFinancial leverage | 0.14x | 1.35x |
| Net DebtTotal debt minus cash | $32.1B | $3.4B |
| Cash & Equiv.Liquid assets | $14.7B | $532M |
| Total DebtShort + long-term debt | $46.8B | $4.0B |
| Interest CoverageEBIT ÷ Interest expense | 22.23x | -7.20x |
Total Returns (Dividends Reinvested)
RDY leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in RDY five years ago would be worth $9,770 today (with dividends reinvested), compared to $3,986 for PRGO. Over the past 12 months, RDY leads with a +0.1% total return vs PRGO's -51.2%. The 3-year compound annual growth rate (CAGR) favors RDY at 4.3% vs PRGO's -25.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -3.0% | -13.5% |
| 1-Year ReturnPast 12 months | +0.1% | -51.2% |
| 3-Year ReturnCumulative with dividends | +13.6% | -58.1% |
| 5-Year ReturnCumulative with dividends | -2.3% | -60.1% |
| 10-Year ReturnCumulative with dividends | +66.4% | -77.7% |
| CAGR (3Y)Annualised 3-year return | +4.3% | -25.2% |
Risk & Volatility
RDY leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
RDY is the less volatile stock with a 0.46 beta — it tends to amplify market swings less than PRGO's 1.18 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RDY currently trades 83.1% from its 52-week high vs PRGO's 41.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.46x | 1.18x |
| 52-Week HighHighest price in past year | $16.17 | $28.44 |
| 52-Week LowLowest price in past year | $12.77 | $9.23 |
| % of 52W HighCurrent price vs 52-week peak | +83.1% | +41.2% |
| RSI (14)Momentum oscillator 0–100 | 49.2 | 60.9 |
| Avg Volume (50D)Average daily shares traded | 2.3M | 3.4M |
Analyst Outlook
PRGO leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates RDY as "Buy" and PRGO as "Hold". For income investors, PRGO offers the higher dividend yield at 9.81% vs RDY's 0.63%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | — | $20.00 |
| # AnalystsCovering analysts | 12 | 36 |
| Dividend YieldAnnual dividend ÷ price | +0.6% | +9.8% |
| Dividend StreakConsecutive years of raises | 3 | 10 |
| Dividend / ShareAnnual DPS | $7.99 | $1.15 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | 0.0% |
RDY leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). PRGO leads in 2 (Valuation Metrics, Analyst Outlook).
RDY vs PRGO: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RDY or PRGO a better buy right now?
For growth investors, Dr.
Reddy's Laboratories Limited (RDY) is the stronger pick with 16. 6% revenue growth year-over-year, versus -2. 8% for Perrigo Company plc (PRGO). Dr. Reddy's Laboratories Limited (RDY) offers the better valuation at 18. 8x trailing P/E (0. 2x forward), making it the more compelling value choice. Analysts rate Dr. Reddy's Laboratories Limited (RDY) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — RDY or PRGO?
On forward P/E, Dr.
Reddy's Laboratories Limited is actually cheaper at 0. 2x.
03Which is the better long-term investment — RDY or PRGO?
Over the past 5 years, Dr.
Reddy's Laboratories Limited (RDY) delivered a total return of -2. 3%, compared to -60. 1% for Perrigo Company plc (PRGO). Over 10 years, the gap is even starker: RDY returned +66. 4% versus PRGO's -77. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — RDY or PRGO?
By beta (market sensitivity over 5 years), Dr.
Reddy's Laboratories Limited (RDY) is the lower-risk stock at 0. 46β versus Perrigo Company plc's 1. 18β — meaning PRGO is approximately 159% more volatile than RDY relative to the S&P 500. On balance sheet safety, Dr. Reddy's Laboratories Limited (RDY) carries a lower debt/equity ratio of 14% versus 135% for Perrigo Company plc — giving it more financial flexibility in a downturn.
05Which is growing faster — RDY or PRGO?
By revenue growth (latest reported year), Dr.
Reddy's Laboratories Limited (RDY) is pulling ahead at 16. 6% versus -2. 8% for Perrigo Company plc (PRGO). On earnings-per-share growth, the picture is similar: Dr. Reddy's Laboratories Limited grew EPS 1. 5% year-over-year, compared to -723. 2% for Perrigo Company plc. Over a 3-year CAGR, RDY leads at 14. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — RDY or PRGO?
Dr.
Reddy's Laboratories Limited (RDY) is the more profitable company, earning 17. 4% net margin versus -33. 5% for Perrigo Company plc — meaning it keeps 17. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RDY leads at 22. 1% versus 8. 1% for PRGO. At the gross margin level — before operating expenses — RDY leads at 58. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is RDY or PRGO more undervalued right now?
On forward earnings alone, Dr.
Reddy's Laboratories Limited (RDY) trades at 0. 2x forward P/E versus 5. 6x for Perrigo Company plc — 5. 3x cheaper on a one-year earnings basis.
08Which pays a better dividend — RDY or PRGO?
All stocks in this comparison pay dividends.
Perrigo Company plc (PRGO) offers the highest yield at 9. 8%, versus 0. 6% for Dr. Reddy's Laboratories Limited (RDY).
09Is RDY or PRGO better for a retirement portfolio?
For long-horizon retirement investors, Dr.
Reddy's Laboratories Limited (RDY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 46), 0. 6% yield). Both have compounded well over 10 years (RDY: +66. 4%, PRGO: -77. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between RDY and PRGO?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: RDY is a mid-cap high-growth stock; PRGO is a small-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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