Drug Manufacturers - Specialty & Generic
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RDY vs LLY
Revenue, margins, valuation, and 5-year total return — side by side.
Drug Manufacturers - General
RDY vs LLY — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Drug Manufacturers - Specialty & Generic | Drug Manufacturers - General |
| Market Cap | $11.21B | $932.64B |
| Revenue (TTM) | $345.83B | $72.25B |
| Net Income (TTM) | $56.59B | $25.27B |
| Gross Margin | 55.2% | 83.5% |
| Operating Margin | 19.3% | 45.9% |
| Forward P/E | 0.2x | 28.6x |
| Total Debt | $46.77B | $42.50B |
| Cash & Equiv. | $14.65B | $7.16B |
RDY vs LLY — 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 | 125.9 | +25.9% |
| Eli Lilly and Compa… (LLY) | 100 | 645.4 | +545.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RDY vs LLY
Each card shows where this stock fits in a portfolio — not just who wins on paper.
RDY is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 3 yrs, beta 0.46, yield 0.6%
- Lower volatility, beta 0.46, Low D/E 13.9%, current ratio 1.92x
- Beta 0.46, yield 0.6%, current ratio 1.92x
LLY carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 44.7%, EPS growth 96.0%, 3Y rev CAGR 31.7%
- 12.7% 10Y total return vs RDY's 69.4%
- 44.7% revenue growth vs RDY's 16.6%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 44.7% revenue growth vs RDY's 16.6% | |
| Value | Lower P/E (0.2x vs 28.6x) | |
| Quality / Margins | 35.0% margin vs RDY's 16.4% | |
| Stability / Safety | Beta 0.46 vs LLY's 0.71, lower leverage | |
| Dividends | 0.6% yield, 3-year raise streak, vs LLY's 0.6% | |
| Momentum (1Y) | +28.2% vs RDY's +0.3% | |
| Efficiency (ROA) | 22.7% ROA vs RDY's 10.1%, ROIC 41.8% vs 16.3% |
RDY vs LLY — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
RDY vs LLY — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
LLY 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 — 4.8x LLY's $72.2B. LLY is the more profitable business, keeping 35.0% of every revenue dollar as net income compared to RDY's 16.4%. On growth, LLY holds the edge at +55.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $345.8B | $72.2B |
| EBITDAEarnings before interest/tax | $86.3B | $34.7B |
| Net IncomeAfter-tax profit | $56.6B | $25.3B |
| Free Cash FlowCash after capex | $24.3B | $13.6B |
| Gross MarginGross profit ÷ Revenue | +55.2% | +83.5% |
| Operating MarginEBIT ÷ Revenue | +19.3% | +45.9% |
| Net MarginNet income ÷ Revenue | +16.4% | +35.0% |
| FCF MarginFCF ÷ Revenue | +7.0% | +18.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.4% | +55.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -14.3% | +169.9% |
Valuation Metrics
RDY leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 18.9x trailing earnings, RDY trades at a 56% valuation discount to LLY's 43.0x P/E. On an enterprise value basis, RDY's 12.3x EV/EBITDA is more attractive than LLY's 31.0x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $11.2B | $932.6B |
| Enterprise ValueMkt cap + debt − cash | $11.5B | $968.0B |
| Trailing P/EPrice ÷ TTM EPS | 18.88x | 43.01x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.22x | 28.59x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.49x |
| EV / EBITDAEnterprise value multiple | 12.34x | 30.97x |
| Price / SalesMarket cap ÷ Revenue | 3.27x | 14.31x |
| Price / BookPrice ÷ Book value/share | 3.17x | 33.41x |
| Price / FCFMarket cap ÷ FCF | 88.56x | 103.95x |
Profitability & Efficiency
LLY leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
LLY delivers a 101.2% return on equity — every $100 of shareholder capital generates $101 in annual profit, vs $15 for RDY. RDY carries lower financial leverage with a 0.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to LLY's 1.60x. On the Piotroski fundamental quality scale (0–9), LLY scores 8/9 vs RDY's 2/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +15.1% | +101.2% |
| ROA (TTM)Return on assets | +10.1% | +22.7% |
| ROICReturn on invested capital | +16.3% | +41.8% |
| ROCEReturn on capital employed | +22.0% | +46.6% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 8 |
| Debt / EquityFinancial leverage | 0.14x | 1.60x |
| Net DebtTotal debt minus cash | $32.1B | $35.3B |
| Cash & Equiv.Liquid assets | $14.7B | $7.2B |
| Total DebtShort + long-term debt | $46.8B | $42.5B |
| Interest CoverageEBIT ÷ Interest expense | 22.23x | 35.68x |
Total Returns (Dividends Reinvested)
LLY leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in LLY five years ago would be worth $52,144 today (with dividends reinvested), compared to $9,822 for RDY. Over the past 12 months, LLY leads with a +28.2% total return vs RDY's +0.3%. The 3-year compound annual growth rate (CAGR) favors LLY at 32.4% vs RDY's 4.4% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -2.9% | -8.5% |
| 1-Year ReturnPast 12 months | +0.3% | +28.2% |
| 3-Year ReturnCumulative with dividends | +13.7% | +131.9% |
| 5-Year ReturnCumulative with dividends | -1.8% | +421.4% |
| 10-Year ReturnCumulative with dividends | +69.4% | +1271.7% |
| CAGR (3Y)Annualised 3-year return | +4.4% | +32.4% |
Risk & Volatility
Evenly matched — RDY and LLY each lead in 1 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 LLY's 0.71 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. LLY currently trades 87.1% from its 52-week high vs RDY's 83.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.46x | 0.71x |
| 52-Week HighHighest price in past year | $16.17 | $1133.95 |
| 52-Week LowLowest price in past year | $12.77 | $623.78 |
| % of 52W HighCurrent price vs 52-week peak | +83.2% | +87.1% |
| RSI (14)Momentum oscillator 0–100 | 45.2 | 61.6 |
| Avg Volume (50D)Average daily shares traded | 2.3M | 2.6M |
Analyst Outlook
Evenly matched — RDY and LLY each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates RDY as "Buy" and LLY as "Buy". For income investors, RDY offers the higher dividend yield at 0.62% vs LLY's 0.61%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | — | $1258.47 |
| # AnalystsCovering analysts | 12 | 45 |
| Dividend YieldAnnual dividend ÷ price | +0.6% | +0.6% |
| Dividend StreakConsecutive years of raises | 3 | 11 |
| Dividend / ShareAnnual DPS | $7.99 | $6.00 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +0.4% |
LLY leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). RDY leads in 1 (Valuation Metrics). 2 tied.
RDY vs LLY: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RDY or LLY a better buy right now?
For growth investors, Eli Lilly and Company (LLY) is the stronger pick with 44.
7% revenue growth year-over-year, versus 16. 6% for Dr. Reddy's Laboratories Limited (RDY). Dr. Reddy's Laboratories Limited (RDY) offers the better valuation at 18. 9x 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 LLY?
On trailing P/E, Dr.
Reddy's Laboratories Limited (RDY) is the cheapest at 18. 9x versus Eli Lilly and Company at 43. 0x. On forward P/E, Dr. Reddy's Laboratories Limited is actually cheaper at 0. 2x.
03Which is the better long-term investment — RDY or LLY?
Over the past 5 years, Eli Lilly and Company (LLY) delivered a total return of +421.
4%, compared to -1. 8% for Dr. Reddy's Laboratories Limited (RDY). Over 10 years, the gap is even starker: LLY returned +1272% versus RDY's +69. 4%. 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 LLY?
By beta (market sensitivity over 5 years), Dr.
Reddy's Laboratories Limited (RDY) is the lower-risk stock at 0. 46β versus Eli Lilly and Company's 0. 71β — meaning LLY is approximately 56% 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 160% for Eli Lilly and Company — giving it more financial flexibility in a downturn.
05Which is growing faster — RDY or LLY?
By revenue growth (latest reported year), Eli Lilly and Company (LLY) is pulling ahead at 44.
7% versus 16. 6% for Dr. Reddy's Laboratories Limited (RDY). On earnings-per-share growth, the picture is similar: Eli Lilly and Company grew EPS 96. 0% year-over-year, compared to 1. 5% for Dr. Reddy's Laboratories Limited. Over a 3-year CAGR, LLY leads at 31. 7% 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 LLY?
Eli Lilly and Company (LLY) is the more profitable company, earning 31.
7% net margin versus 17. 4% for Dr. Reddy's Laboratories Limited — meaning it keeps 31. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LLY leads at 45. 6% versus 22. 1% for RDY. At the gross margin level — before operating expenses — LLY leads at 83. 8%, 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 LLY more undervalued right now?
On forward earnings alone, Dr.
Reddy's Laboratories Limited (RDY) trades at 0. 2x forward P/E versus 28. 6x for Eli Lilly and Company — 28. 4x cheaper on a one-year earnings basis.
08Which pays a better dividend — RDY or LLY?
All stocks in this comparison pay dividends.
Dr. Reddy's Laboratories Limited (RDY) offers the highest yield at 0. 6%, versus 0. 6% for Eli Lilly and Company (LLY).
09Is RDY or LLY better for a retirement portfolio?
For long-horizon retirement investors, Eli Lilly and Company (LLY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
71), 0. 6% yield, +1272% 10Y return). Both have compounded well over 10 years (LLY: +1272%, RDY: +69. 4%), 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 LLY?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
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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