Seek Returns logo

ABT vs. RDY: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ABT and RDY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

ABT is a standard domestic listing, while RDY trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolABTRDY
Company NameAbbott LaboratoriesDr. Reddy's Laboratories Limited
CountryUnited StatesIndia
GICS SectorHealth CareHealth Care
GICS IndustryHealth Care Equipment & SuppliesPharmaceuticals
Market Capitalization230.77 billion USD12.18 billion USD
ExchangeNYSENYSE
Listing DateMarch 17, 1980April 11, 2001
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of ABT and RDY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ABT vs. RDY: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolABTRDY
5-Day Price Return1.78%1.16%
13-Week Price Return-0.35%3.95%
26-Week Price Return1.85%4.99%
52-Week Price Return19.03%-9.49%
Month-to-Date Return5.07%0.83%
Year-to-Date Return17.22%-7.88%
10-Day Avg. Volume5.64M1.40M
3-Month Avg. Volume6.59M1.68M
3-Month Volatility24.22%19.60%
Beta0.700.68

Profitability

Return on Equity (TTM)

ABT

29.93%

Health Care Equipment & Supplies Industry

Max
34.53%
Q3
19.38%
Median
9.52%
Q1
4.86%
Min
-7.58%

In the upper quartile for the Health Care Equipment & Supplies industry, ABT’s Return on Equity of 29.93% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

RDY

8.86%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.90%
Q1
5.63%
Min
-9.96%

RDY’s Return on Equity of 8.86% is on par with the norm for the Pharmaceuticals industry, indicating its profitability relative to shareholder equity is typical for the sector.

ABT vs. RDY: A comparison of their Return on Equity (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Net Profit Margin (TTM)

ABT

32.43%

Health Care Equipment & Supplies Industry

Max
23.34%
Q3
13.06%
Median
9.53%
Q1
5.96%
Min
-3.87%

ABT’s Net Profit Margin of 32.43% is exceptionally high, placing it well beyond the typical range for the Health Care Equipment & Supplies industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

RDY

16.95%

Pharmaceuticals Industry

Max
34.51%
Q3
17.73%
Median
12.12%
Q1
5.99%
Min
-7.73%

RDY’s Net Profit Margin of 16.95% is aligned with the median group of its peers in the Pharmaceuticals industry. This indicates its ability to convert revenue into profit is typical for the sector.

ABT vs. RDY: A comparison of their Net Profit Margin (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Operating Profit Margin (TTM)

ABT

17.34%

Health Care Equipment & Supplies Industry

Max
29.44%
Q3
17.80%
Median
13.95%
Q1
8.73%
Min
-3.56%

ABT’s Operating Profit Margin of 17.34% is around the midpoint for the Health Care Equipment & Supplies industry, indicating that its efficiency in managing core business operations is typical for the sector.

RDY

20.17%

Pharmaceuticals Industry

Max
41.53%
Q3
23.00%
Median
16.24%
Q1
9.24%
Min
-6.94%

RDY’s Operating Profit Margin of 20.17% is around the midpoint for the Pharmaceuticals industry, indicating that its efficiency in managing core business operations is typical for the sector.

ABT vs. RDY: A comparison of their Operating Profit Margin (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Profitability at a Glance

SymbolABTRDY
Return on Equity (TTM)29.93%8.86%
Return on Assets (TTM)17.41%5.93%
Net Profit Margin (TTM)32.43%16.95%
Operating Profit Margin (TTM)17.34%20.17%
Gross Profit Margin (TTM)56.20%68.36%

Financial Strength

Current Ratio (MRQ)

ABT

1.82

Health Care Equipment & Supplies Industry

Max
4.90
Q3
3.05
Median
2.14
Q1
1.49
Min
0.86

ABT’s Current Ratio of 1.82 aligns with the median group of the Health Care Equipment & Supplies industry, indicating that its short-term liquidity is in line with its sector peers.

RDY

1.92

Pharmaceuticals Industry

Max
4.49
Q3
2.77
Median
1.74
Q1
1.26
Min
0.11

RDY’s Current Ratio of 1.92 aligns with the median group of the Pharmaceuticals industry, indicating that its short-term liquidity is in line with its sector peers.

ABT vs. RDY: A comparison of their Current Ratio (MRQ) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ABT

0.27

Health Care Equipment & Supplies Industry

Max
1.49
Q3
0.71
Median
0.45
Q1
0.14
Min
0.00

ABT’s Debt-to-Equity Ratio of 0.27 is typical for the Health Care Equipment & Supplies industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

RDY

0.14

Pharmaceuticals Industry

Max
2.44
Q3
1.07
Median
0.42
Q1
0.11
Min
0.00

RDY’s Debt-to-Equity Ratio of 0.14 is typical for the Pharmaceuticals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ABT vs. RDY: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Interest Coverage Ratio (TTM)

ABT

38.30

Health Care Equipment & Supplies Industry

Max
58.29
Q3
25.56
Median
9.06
Q1
3.60
Min
-28.92

ABT’s Interest Coverage Ratio of 38.30 is in the upper quartile for the Health Care Equipment & Supplies industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

RDY

13.50

Pharmaceuticals Industry

Max
103.95
Q3
44.18
Median
9.83
Q1
2.82
Min
-42.71

RDY’s Interest Coverage Ratio of 13.50 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.

ABT vs. RDY: A comparison of their Interest Coverage Ratio (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Financial Strength at a Glance

SymbolABTRDY
Current Ratio (MRQ)1.821.92
Quick Ratio (MRQ)1.141.37
Debt-to-Equity Ratio (MRQ)0.270.14
Interest Coverage Ratio (TTM)38.3013.50

Growth

Revenue Growth

ABT vs. RDY: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ABT vs. RDY: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ABT

1.73%

Health Care Equipment & Supplies Industry

Max
4.05%
Q3
1.76%
Median
0.71%
Q1
0.00%
Min
0.00%

ABT’s Dividend Yield of 1.73% is consistent with its peers in the Health Care Equipment & Supplies industry, providing a dividend return that is standard for its sector.

RDY

0.64%

Pharmaceuticals Industry

Max
6.98%
Q3
3.32%
Median
2.13%
Q1
0.14%
Min
0.00%

RDY’s Dividend Yield of 0.64% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.

ABT vs. RDY: A comparison of their Dividend Yield (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Dividend Payout Ratio (TTM)

ABT

28.42%

Health Care Equipment & Supplies Industry

Max
160.00%
Q3
72.47%
Median
27.49%
Q1
0.00%
Min
0.00%

ABT’s Dividend Payout Ratio of 28.42% is within the typical range for the Health Care Equipment & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

RDY

53.05%

Pharmaceuticals Industry

Max
165.20%
Q3
90.59%
Median
49.13%
Q1
28.91%
Min
0.00%

RDY’s Dividend Payout Ratio of 53.05% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ABT vs. RDY: A comparison of their Dividend Payout Ratio (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Dividend at a Glance

SymbolABTRDY
Dividend Yield (TTM)1.73%0.64%
Dividend Payout Ratio (TTM)28.42%53.05%

Valuation

Price-to-Earnings Ratio (TTM)

ABT

16.47

Health Care Equipment & Supplies Industry

Max
73.48
Q3
51.69
Median
34.31
Q1
25.74
Min
11.47

In the lower quartile for the Health Care Equipment & Supplies industry, ABT’s P/E Ratio of 16.47 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

RDY

18.29

Pharmaceuticals Industry

Max
42.51
Q3
26.88
Median
19.11
Q1
15.12
Min
0.00

RDY’s P/E Ratio of 18.29 is within the middle range for the Pharmaceuticals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ABT vs. RDY: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Price-to-Sales Ratio (TTM)

ABT

5.34

Health Care Equipment & Supplies Industry

Max
9.53
Q3
5.26
Median
3.39
Q1
2.13
Min
0.00

ABT’s P/S Ratio of 5.34 is in the upper echelon for the Health Care Equipment & Supplies industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

RDY

3.10

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

RDY’s P/S Ratio of 3.10 aligns with the market consensus for the Pharmaceuticals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ABT vs. RDY: A comparison of their Price-to-Sales Ratio (TTM) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Price-to-Book Ratio (MRQ)

ABT

4.68

Health Care Equipment & Supplies Industry

Max
10.85
Q3
5.98
Median
3.48
Q1
2.43
Min
0.69

ABT’s P/B Ratio of 4.68 is within the conventional range for the Health Care Equipment & Supplies industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

RDY

2.84

Pharmaceuticals Industry

Max
9.78
Q3
4.96
Median
2.23
Q1
1.46
Min
0.60

RDY’s P/B Ratio of 2.84 is within the conventional range for the Pharmaceuticals industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ABT vs. RDY: A comparison of their Price-to-Book Ratio (MRQ) against their respective Health Care Equipment & Supplies and Pharmaceuticals industry benchmarks.

Valuation at a Glance

SymbolABTRDY
Price-to-Earnings Ratio (TTM)16.4718.29
Price-to-Sales Ratio (TTM)5.343.10
Price-to-Book Ratio (MRQ)4.682.84
Price-to-Free Cash Flow Ratio (TTM)33.9986.35