Drug Manufacturers - Specialty & Generic
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RDY vs SUN
Revenue, margins, valuation, and 5-year total return — side by side.
Oil & Gas Refining & Marketing
RDY vs SUN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Drug Manufacturers - Specialty & Generic | Oil & Gas Refining & Marketing |
| Market Cap | $11.21B | $9.13B |
| Revenue (TTM) | $345.83B | $25.20B |
| Net Income (TTM) | $56.59B | $396M |
| Gross Margin | 55.2% | 8.9% |
| Operating Margin | 19.3% | 3.7% |
| Forward P/E | 0.2x | 9.3x |
| Total Debt | $46.77B | $16.11B |
| Cash & Equiv. | $14.65B | $891M |
RDY vs SUN — 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% |
| Sunoco LP (SUN) | 100 | 259.3 | +159.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RDY vs SUN
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 sleep-well-at-night.
- Rev growth 16.6%, EPS growth 1.5%, 3Y rev CAGR 14.9%
- Lower volatility, beta 0.46, Low D/E 13.9%, current ratio 1.92x
- 16.6% revenue growth vs SUN's 11.1%
SUN is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 4 yrs, beta 0.13, yield 7.2%
- 201.8% 10Y total return vs RDY's 69.4%
- Beta 0.13, yield 7.2%, current ratio 1.38x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 16.6% revenue growth vs SUN's 11.1% | |
| Value | Lower P/E (0.2x vs 9.3x) | |
| Quality / Margins | 16.4% margin vs SUN's 1.6% | |
| Stability / Safety | Beta 0.13 vs RDY's 0.46 | |
| Dividends | 7.2% yield, 4-year raise streak, vs RDY's 0.6% | |
| Momentum (1Y) | +31.3% vs RDY's +0.3% | |
| Efficiency (ROA) | 10.1% ROA vs SUN's 2.1%, ROIC 16.3% vs 4.0% |
RDY vs SUN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
RDY vs SUN — 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 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
RDY is the larger business by revenue, generating $345.8B annually — 13.7x SUN's $25.2B. RDY is the more profitable business, keeping 16.4% of every revenue dollar as net income compared to SUN's 1.6%. On growth, SUN holds the edge at +63.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $345.8B | $25.2B |
| EBITDAEarnings before interest/tax | $86.3B | $1.6B |
| Net IncomeAfter-tax profit | $56.6B | $396M |
| Free Cash FlowCash after capex | $24.3B | $628M |
| Gross MarginGross profit ÷ Revenue | +55.2% | +8.9% |
| Operating MarginEBIT ÷ Revenue | +19.3% | +3.7% |
| Net MarginNet income ÷ Revenue | +16.4% | +1.6% |
| FCF MarginFCF ÷ Revenue | +7.0% | +2.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.4% | +63.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -14.3% | -83.8% |
Valuation Metrics
SUN leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 18.3x trailing earnings, SUN trades at a 3% valuation discount to RDY's 18.9x P/E. On an enterprise value basis, RDY's 12.3x EV/EBITDA is more attractive than SUN's 15.1x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $11.2B | $9.1B |
| Enterprise ValueMkt cap + debt − cash | $11.5B | $24.4B |
| Trailing P/EPrice ÷ TTM EPS | 18.88x | 18.28x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.22x | 9.27x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.02x |
| EV / EBITDAEnterprise value multiple | 12.34x | 15.06x |
| Price / SalesMarket cap ÷ Revenue | 3.27x | 0.36x |
| Price / BookPrice ÷ Book value/share | 3.17x | 1.15x |
| Price / FCFMarket cap ÷ FCF | 88.56x | 14.85x |
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 $7 for SUN. RDY carries lower financial leverage with a 0.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to SUN's 2.01x. On the Piotroski fundamental quality scale (0–9), SUN scores 5/9 vs RDY's 2/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +15.1% | +7.3% |
| ROA (TTM)Return on assets | +10.1% | +2.1% |
| ROICReturn on invested capital | +16.3% | +4.0% |
| ROCEReturn on capital employed | +22.0% | +5.0% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 5 |
| Debt / EquityFinancial leverage | 0.14x | 2.01x |
| Net DebtTotal debt minus cash | $32.1B | $15.2B |
| Cash & Equiv.Liquid assets | $14.7B | $891M |
| Total DebtShort + long-term debt | $46.8B | $16.1B |
| Interest CoverageEBIT ÷ Interest expense | 22.23x | 2.09x |
Total Returns (Dividends Reinvested)
SUN leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in SUN five years ago would be worth $23,394 today (with dividends reinvested), compared to $9,822 for RDY. Over the past 12 months, SUN leads with a +31.3% total return vs RDY's +0.3%. The 3-year compound annual growth rate (CAGR) favors SUN at 20.6% vs RDY's 4.4% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -2.9% | +28.7% |
| 1-Year ReturnPast 12 months | +0.3% | +31.3% |
| 3-Year ReturnCumulative with dividends | +13.7% | +75.5% |
| 5-Year ReturnCumulative with dividends | -1.8% | +133.9% |
| 10-Year ReturnCumulative with dividends | +69.4% | +201.8% |
| CAGR (3Y)Annualised 3-year return | +4.4% | +20.6% |
Risk & Volatility
SUN leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
SUN is the less volatile stock with a 0.13 beta — it tends to amplify market swings less than RDY's 0.46 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SUN currently trades 95.6% 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 | 0.13x |
| 52-Week HighHighest price in past year | $16.17 | $70.00 |
| 52-Week LowLowest price in past year | $12.77 | $47.98 |
| % of 52W HighCurrent price vs 52-week peak | +83.2% | +95.6% |
| RSI (14)Momentum oscillator 0–100 | 45.2 | 65.3 |
| Avg Volume (50D)Average daily shares traded | 2.3M | 469K |
Analyst Outlook
SUN leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates RDY as "Buy" and SUN as "Hold". For income investors, SUN offers the higher dividend yield at 7.16% vs RDY's 0.62%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | — | $68.00 |
| # AnalystsCovering analysts | 12 | 24 |
| Dividend YieldAnnual dividend ÷ price | +0.6% | +7.2% |
| Dividend StreakConsecutive years of raises | 3 | 4 |
| Dividend / ShareAnnual DPS | $7.99 | $4.79 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | 0.0% |
SUN leads in 4 of 6 categories (Valuation Metrics, Total Returns). RDY leads in 2 (Income & Cash Flow, Profitability & Efficiency).
RDY vs SUN: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RDY or SUN 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 11. 1% for Sunoco LP (SUN). Sunoco LP (SUN) offers the better valuation at 18. 3x trailing P/E (9. 3x 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 SUN?
On trailing P/E, Sunoco LP (SUN) is the cheapest at 18.
3x versus Dr. Reddy's Laboratories Limited at 18. 9x. On forward P/E, Dr. Reddy's Laboratories Limited is actually cheaper at 0. 2x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — RDY or SUN?
Over the past 5 years, Sunoco LP (SUN) delivered a total return of +133.
9%, compared to -1. 8% for Dr. Reddy's Laboratories Limited (RDY). Over 10 years, the gap is even starker: SUN returned +201. 8% 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 SUN?
By beta (market sensitivity over 5 years), Sunoco LP (SUN) is the lower-risk stock at 0.
13β versus Dr. Reddy's Laboratories Limited's 0. 46β — meaning RDY is approximately 260% more volatile than SUN 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 2% for Sunoco LP — giving it more financial flexibility in a downturn.
05Which is growing faster — RDY or SUN?
By revenue growth (latest reported year), Dr.
Reddy's Laboratories Limited (RDY) is pulling ahead at 16. 6% versus 11. 1% for Sunoco LP (SUN). On earnings-per-share growth, the picture is similar: Dr. Reddy's Laboratories Limited grew EPS 1. 5% year-over-year, compared to -39. 0% for Sunoco LP. 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 SUN?
Dr.
Reddy's Laboratories Limited (RDY) is the more profitable company, earning 17. 4% net margin versus 2. 1% for Sunoco LP — 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 3. 7% for SUN. 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 SUN more undervalued right now?
On forward earnings alone, Dr.
Reddy's Laboratories Limited (RDY) trades at 0. 2x forward P/E versus 9. 3x for Sunoco LP — 9. 0x cheaper on a one-year earnings basis.
08Which pays a better dividend — RDY or SUN?
All stocks in this comparison pay dividends.
Sunoco LP (SUN) offers the highest yield at 7. 2%, versus 0. 6% for Dr. Reddy's Laboratories Limited (RDY).
09Is RDY or SUN better for a retirement portfolio?
For long-horizon retirement investors, Sunoco LP (SUN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
13), 7. 2% yield, +201. 8% 10Y return). Both have compounded well over 10 years (SUN: +201. 8%, 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 SUN?
These companies operate in different sectors (RDY (Healthcare) and SUN (Energy)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: RDY is a mid-cap high-growth stock; SUN 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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