ALKS vs. RDY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALKS and RDY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
RDY’s market capitalization of 12.55 billion USD is significantly greater than ALKS’s 4.76 billion USD, highlighting its more substantial market valuation.
With betas of 0.42 for ALKS and 0.39 for RDY, both stocks show similar sensitivity to overall market movements.
RDY is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ALKS, on the other hand, is a domestic entity.
| Symbol | ALKS | RDY |
|---|---|---|
| Company Name | Alkermes plc | Dr. Reddy's Laboratories Limited |
| Country | IE | IN |
| Sector | Healthcare | Healthcare |
| Industry | Biotechnology | Drug Manufacturers - Specialty & Generic |
| CEO | Richard F. Pops | Erez Israeli |
| Price | 28.85 USD | 15.08 USD |
| Market Cap | 4.76 billion USD | 12.55 billion USD |
| Beta | 0.42 | 0.39 |
| Exchange | NASDAQ | NYSE |
| IPO Date | July 16, 1991 | April 11, 2001 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ALKS 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.
Profitability
Return on Equity
ALKS
25.41%
Biotechnology Industry
- Max
- 72.39%
- Q3
- -6.30%
- Median
- -32.82%
- Q1
- -68.26%
- Min
- -147.61%
In the upper quartile for the Biotechnology industry, ALKS’s Return on Equity of 25.41% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
RDY
18.08%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 51.32%
- Q3
- 9.89%
- Median
- -3.37%
- Q1
- -20.99%
- Min
- -36.07%
In the upper quartile for the Drug Manufacturers - Specialty & Generic industry, RDY’s Return on Equity of 18.08% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ALKS
20.03%
Biotechnology Industry
- Max
- 48.74%
- Q3
- -10.68%
- Median
- -31.65%
- Q1
- -52.92%
- Min
- -113.69%
In the upper quartile for the Biotechnology industry, ALKS’s Return on Invested Capital of 20.03% signifies a highly effective use of its capital to generate profits when compared to its peers.
RDY
13.27%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 22.54%
- Q3
- 8.45%
- Median
- 1.42%
- Q1
- -9.01%
- Min
- -28.41%
In the upper quartile for the Drug Manufacturers - Specialty & Generic industry, RDY’s Return on Invested Capital of 13.27% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ALKS
23.30%
Biotechnology Industry
- Max
- 87.75%
- Q3
- -5.05%
- Median
- -103.44%
- Q1
- -1,032.77%
- Min
- -2,366.07%
A Net Profit Margin of 23.30% places ALKS in the upper quartile for the Biotechnology industry, signifying strong profitability and more effective cost management than most of its peers.
RDY
17.37%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 40.33%
- Q3
- 11.92%
- Median
- -0.45%
- Q1
- -13.07%
- Min
- -34.27%
A Net Profit Margin of 17.37% places RDY in the upper quartile for the Drug Manufacturers - Specialty & Generic industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ALKS
25.84%
Biotechnology Industry
- Max
- 87.75%
- Q3
- -3.28%
- Median
- -115.26%
- Q1
- -1,188.86%
- Min
- -2,943.30%
An Operating Profit Margin of 25.84% places ALKS in the upper quartile for the Biotechnology industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
RDY
21.95%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 46.91%
- Q3
- 19.02%
- Median
- 6.23%
- Q1
- -11.23%
- Min
- -51.89%
An Operating Profit Margin of 21.95% places RDY in the upper quartile for the Drug Manufacturers - Specialty & Generic industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ALKS | RDY |
|---|---|---|
| Return on Equity (TTM) | 25.41% | 18.08% |
| Return on Assets (TTM) | 16.94% | 11.47% |
| Return on Invested Capital (TTM) | 20.03% | 13.27% |
| Net Profit Margin (TTM) | 23.30% | 17.37% |
| Operating Profit Margin (TTM) | 25.84% | 21.95% |
| Gross Profit Margin (TTM) | 87.67% | 57.17% |
Financial Strength
Current Ratio
ALKS
3.33
Biotechnology Industry
- Max
- 28.73
- Q3
- 13.97
- Median
- 6.31
- Q1
- 3.60
- Min
- 0.02
ALKS’s Current Ratio of 3.33 falls into the lower quartile for the Biotechnology industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
RDY
1.92
Drug Manufacturers - Specialty & Generic Industry
- Max
- 5.74
- Q3
- 3.37
- Median
- 2.64
- Q1
- 1.73
- Min
- 0.88
RDY’s Current Ratio of 1.92 aligns with the median group of the Drug Manufacturers - Specialty & Generic industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ALKS
0.05
Biotechnology Industry
- Max
- 0.46
- Q3
- 0.22
- Median
- 0.06
- Q1
- 0.02
- Min
- 0.00
ALKS’s Debt-to-Equity Ratio of 0.05 is typical for the Biotechnology 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
Drug Manufacturers - Specialty & Generic Industry
- Max
- 1.45
- Q3
- 1.06
- Median
- 0.62
- Q1
- 0.13
- Min
- 0.00
RDY’s Debt-to-Equity Ratio of 0.14 is typical for the Drug Manufacturers - Specialty & Generic industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ALKS
23.56
Biotechnology Industry
- Max
- 108.32
- Q3
- -0.55
- Median
- -8.49
- Q1
- -74.83
- Min
- -168.36
ALKS’s Interest Coverage Ratio of 23.56 is in the upper quartile for the Biotechnology industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
RDY
32.89
Drug Manufacturers - Specialty & Generic Industry
- Max
- 10.17
- Q3
- 3.39
- Median
- 0.85
- Q1
- -2.63
- Min
- -5.84
With an Interest Coverage Ratio of 32.89, RDY demonstrates a superior capacity to service its debt, placing it well above the typical range for the Drug Manufacturers - Specialty & Generic industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ALKS | RDY |
|---|---|---|
| Current Ratio (TTM) | 3.33 | 1.92 |
| Quick Ratio (TTM) | 2.92 | 1.37 |
| Debt-to-Equity Ratio (TTM) | 0.05 | 0.14 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.09 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.73 | 0.35 |
| Interest Coverage Ratio (TTM) | 23.56 | 32.89 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALKS and RDY. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALKS
0.00%
Biotechnology Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALKS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
RDY
0.61%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 9.29%
- Q3
- 0.31%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.61%, RDY offers a more attractive income stream than most of its peers in the Drug Manufacturers - Specialty & Generic industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ALKS
0.00%
Biotechnology Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALKS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
RDY
11.78%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 125.42%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
RDY’s Dividend Payout Ratio of 11.78% is in the upper quartile for the Drug Manufacturers - Specialty & Generic industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ALKS | RDY |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.61% |
| Dividend Payout Ratio (TTM) | 0.00% | 11.78% |
Valuation
Price-to-Earnings Ratio
ALKS
13.37
Biotechnology Industry
- Max
- 78.44
- Q3
- 48.98
- Median
- 20.50
- Q1
- 12.64
- Min
- 2.14
ALKS’s P/E Ratio of 13.37 is within the middle range for the Biotechnology industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
RDY
19.29
Drug Manufacturers - Specialty & Generic Industry
- Max
- 40.89
- Q3
- 28.12
- Median
- 23.94
- Q1
- 18.79
- Min
- 7.76
RDY’s P/E Ratio of 19.29 is within the middle range for the Drug Manufacturers - Specialty & Generic industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ALKS
3.18
Biotechnology Industry
- Max
- 2.29
- Q3
- 1.10
- Median
- 0.49
- Q1
- 0.16
- Min
- 0.02
ALKS’s Forward PEG Ratio of 3.18 is exceptionally high for the Biotechnology industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
RDY
-5.44
Drug Manufacturers - Specialty & Generic Industry
- Max
- 4.19
- Q3
- 2.94
- Median
- 1.47
- Q1
- 0.35
- Min
- 0.00
RDY has a negative Forward PEG Ratio of -5.44. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
Price-to-Sales Ratio
ALKS
3.14
Biotechnology Industry
- Max
- 110.90
- Q3
- 59.76
- Median
- 11.33
- Q1
- 4.45
- Min
- 0.17
In the lower quartile for the Biotechnology industry, ALKS’s P/S Ratio of 3.14 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
RDY
3.35
Drug Manufacturers - Specialty & Generic Industry
- Max
- 7.49
- Q3
- 4.45
- Median
- 2.12
- Q1
- 1.21
- Min
- 0.25
RDY’s P/S Ratio of 3.35 aligns with the market consensus for the Drug Manufacturers - Specialty & Generic industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ALKS
3.12
Biotechnology Industry
- Max
- 15.78
- Q3
- 7.44
- Median
- 3.31
- Q1
- 1.58
- Min
- 0.31
The P/B Ratio is often not a primary valuation metric for the Biotechnology industry.
RDY
3.27
Drug Manufacturers - Specialty & Generic Industry
- Max
- 4.93
- Q3
- 3.95
- Median
- 2.14
- Q1
- 1.30
- Min
- 0.13
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - Specialty & Generic industry.
Valuation at a Glance
| Symbol | ALKS | RDY |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 13.37 | 19.29 |
| Forward PEG Ratio (TTM) | 3.18 | -5.44 |
| Price-to-Sales Ratio (P/S, TTM) | 3.14 | 3.35 |
| Price-to-Book Ratio (P/B, TTM) | 3.12 | 3.27 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 9.88 | 71.17 |
| EV-to-EBITDA (TTM) | 9.90 | 12.30 |
| EV-to-Sales (TTM) | 2.93 | 3.45 |