RDY vs TEVA

For growth investors, Dr.

Reddy's Laboratories Limited (RDY) is the stronger pick with 16. 6% revenue growth year-over-year, versus 4. 3% for Teva Pharmaceutical Industries Limited (TEVA). 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.

On trailing P/E, Dr.

Reddy's Laboratories Limited (RDY) is the cheapest at 18. 8x versus Teva Pharmaceutical Industries Limited at 30. 0x. On forward P/E, Dr. Reddy's Laboratories Limited is actually cheaper at 0. 2x.

Over the past 5 years, Teva Pharmaceutical Industries Limited (TEVA) delivered a total return of +246.

2%, compared to -2. 3% for Dr. Reddy's Laboratories Limited (RDY). Over 10 years, the gap is even starker: RDY returned +66. 4% versus TEVA's -28. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Dr.

Reddy's Laboratories Limited (RDY) is the lower-risk stock at 0. 46β versus Teva Pharmaceutical Industries Limited's 1. 13β — meaning TEVA is approximately 148% 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 2% for Teva Pharmaceutical Industries Limited — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Dr.

Reddy's Laboratories Limited (RDY) is pulling ahead at 16. 6% versus 4. 3% for Teva Pharmaceutical Industries Limited (TEVA). On earnings-per-share growth, the picture is similar: Teva Pharmaceutical Industries Limited grew EPS 182. 8% year-over-year, compared to 1. 5% for Dr. Reddy's Laboratories Limited. 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.

Dr.

Reddy's Laboratories Limited (RDY) is the more profitable company, earning 17. 4% net margin versus 8. 2% for Teva Pharmaceutical Industries Limited — 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 12. 5% for TEVA. 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.

On forward earnings alone, Dr.

Reddy's Laboratories Limited (RDY) trades at 0. 2x forward P/E versus 14. 5x for Teva Pharmaceutical Industries Limited — 14. 3x cheaper on a one-year earnings basis.

In this comparison, RDY (0.

6% yield) pays a dividend. TEVA does not pay a meaningful dividend and should not be held primarily for income.

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%, TEVA: -28. 3%), 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.

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; TEVA is a mid-cap quality compounder stock. RDY pays a dividend while TEVA does not, making them suitable for different income and tax situations. 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.