AMGN vs. RDY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMGN and RDY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AMGN’s market capitalization of 160.37 billion USD is substantially larger than RDY’s 12.55 billion USD, indicating a significant difference in their market valuations.
With betas of 0.50 for AMGN 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. AMGN, on the other hand, is a domestic entity.
| Symbol | AMGN | RDY |
|---|---|---|
| Company Name | Amgen Inc. | Dr. Reddy's Laboratories Limited |
| Country | US | IN |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Drug Manufacturers - Specialty & Generic |
| CEO | Robert A. Bradway | Erez Israeli |
| Price | 298.24 USD | 15.08 USD |
| Market Cap | 160.37 billion USD | 12.55 billion USD |
| Beta | 0.50 | 0.39 |
| Exchange | NASDAQ | NYSE |
| IPO Date | June 17, 1983 | April 11, 2001 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AMGN 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
AMGN
92.94%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 76.92%
- Median
- 30.71%
- Q1
- 8.97%
- Min
- -14.85%
In the upper quartile for the Drug Manufacturers - General industry, AMGN’s Return on Equity of 92.94% 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
AMGN
9.53%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
AMGN’s Return on Invested Capital of 9.53% is in line with the norm for the Drug Manufacturers - General industry, reflecting a standard level of efficiency in generating profits from its capital base.
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
AMGN
17.39%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
AMGN’s Net Profit Margin of 17.39% is aligned with the median group of its peers in the Drug Manufacturers - General industry. This indicates its ability to convert revenue into profit is typical for the sector.
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
AMGN
21.82%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
AMGN’s Operating Profit Margin of 21.82% is around the midpoint for the Drug Manufacturers - General industry, indicating that its efficiency in managing core business operations is typical for the sector.
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 | AMGN | RDY |
|---|---|---|
| Return on Equity (TTM) | 92.94% | 18.08% |
| Return on Assets (TTM) | 6.64% | 11.47% |
| Return on Invested Capital (TTM) | 9.53% | 13.27% |
| Net Profit Margin (TTM) | 17.39% | 17.37% |
| Operating Profit Margin (TTM) | 21.82% | 21.95% |
| Gross Profit Margin (TTM) | 63.00% | 57.17% |
Financial Strength
Current Ratio
AMGN
1.17
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.37
- Median
- 1.26
- Q1
- 0.87
- Min
- 0.39
AMGN’s Current Ratio of 1.17 aligns with the median group of the Drug Manufacturers - General industry, indicating that its short-term liquidity is in line with its sector peers.
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
AMGN
9.24
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.44
- Median
- 0.86
- Q1
- 0.68
- Min
- 0.09
With a Debt-to-Equity Ratio of 9.24, AMGN operates with exceptionally high leverage compared to the Drug Manufacturers - General industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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
AMGN
3.19
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
In the lower quartile for the Drug Manufacturers - General industry, AMGN’s Interest Coverage Ratio of 3.19 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
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 | AMGN | RDY |
|---|---|---|
| Current Ratio (TTM) | 1.17 | 1.92 |
| Quick Ratio (TTM) | 0.88 | 1.37 |
| Debt-to-Equity Ratio (TTM) | 9.24 | 0.14 |
| Debt-to-Asset Ratio (TTM) | 0.64 | 0.09 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.92 | 0.35 |
| Interest Coverage Ratio (TTM) | 3.19 | 32.89 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AMGN 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
AMGN
3.10%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.10%
- Median
- 3.34%
- Q1
- 1.89%
- Min
- 0.00%
AMGN’s Dividend Yield of 3.10% is consistent with its peers in the Drug Manufacturers - General industry, providing a dividend return that is standard for its sector.
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
AMGN
82.64%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 78.91%
- Median
- 60.27%
- Q1
- 43.74%
- Min
- 0.00%
AMGN’s Dividend Payout Ratio of 82.64% is in the upper quartile for the Drug Manufacturers - General 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.
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 | AMGN | RDY |
|---|---|---|
| Dividend Yield (TTM) | 3.10% | 0.61% |
| Dividend Payout Ratio (TTM) | 82.64% | 11.78% |
Valuation
Price-to-Earnings Ratio
AMGN
27.04
Drug Manufacturers - General Industry
- Max
- 27.96
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
A P/E Ratio of 27.04 places AMGN in the upper quartile for the Drug Manufacturers - General industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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
AMGN
7.57
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
AMGN’s Forward PEG Ratio of 7.57 is exceptionally high for the Drug Manufacturers - General 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
AMGN
4.70
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
AMGN’s P/S Ratio of 4.70 is in the upper echelon for the Drug Manufacturers - General 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
3.35
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
AMGN
25.85
Drug Manufacturers - General Industry
- Max
- 7.80
- Q3
- 7.80
- Median
- 5.30
- Q1
- 4.06
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General 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 | AMGN | RDY |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 27.04 | 19.29 |
| Forward PEG Ratio (TTM) | 7.57 | -5.44 |
| Price-to-Sales Ratio (P/S, TTM) | 4.70 | 3.35 |
| Price-to-Book Ratio (P/B, TTM) | 25.85 | 3.27 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 14.69 | 71.17 |
| EV-to-EBITDA (TTM) | 16.88 | 12.30 |
| EV-to-Sales (TTM) | 6.12 | 3.45 |