Seek Returns logo

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

Updated on

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

Company Profile

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

SymbolLLYRDY
Company NameEli Lilly and CompanyDr. Reddy's Laboratories Limited
CountryUnited StatesIndia
GICS SectorHealth CareHealth Care
GICS IndustryPharmaceuticalsPharmaceuticals
Market Capitalization632.40 billion USD11.83 billion USD
ExchangeNYSENYSE
Listing DateJune 1, 1972April 11, 2001
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of LLY 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.

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

Historical Performance at a Glance

SymbolLLYRDY
5-Day Price Return3.07%-0.64%
13-Week Price Return-6.58%1.68%
26-Week Price Return-19.09%1.77%
52-Week Price Return-23.47%-9.94%
Month-to-Date Return-4.68%-1.71%
Year-to-Date Return-8.62%-10.20%
10-Day Avg. Volume9.65M1.37M
3-Month Avg. Volume4.51M1.70M
3-Month Volatility40.54%18.96%
Beta0.460.69

Profitability

Return on Equity (TTM)

LLY

88.36%

Pharmaceuticals Industry

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

LLY’s Return on Equity of 88.36% is exceptionally high, placing it well beyond the typical range for the Pharmaceuticals industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

LLY vs. RDY: A comparison of their Return on Equity (TTM) against the Pharmaceuticals industry benchmark.

Net Profit Margin (TTM)

LLY

25.91%

Pharmaceuticals Industry

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

A Net Profit Margin of 25.91% places LLY in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.

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.

LLY vs. RDY: A comparison of their Net Profit Margin (TTM) against the Pharmaceuticals industry benchmark.

Operating Profit Margin (TTM)

LLY

32.37%

Pharmaceuticals Industry

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

An Operating Profit Margin of 32.37% places LLY in the upper quartile for the Pharmaceuticals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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.

LLY vs. RDY: A comparison of their Operating Profit Margin (TTM) against the Pharmaceuticals industry benchmark.

Profitability at a Glance

SymbolLLYRDY
Return on Equity (TTM)88.36%8.86%
Return on Assets (TTM)16.02%5.93%
Net Profit Margin (TTM)25.91%16.95%
Operating Profit Margin (TTM)32.37%20.17%
Gross Profit Margin (TTM)82.64%68.36%

Financial Strength

Current Ratio (MRQ)

LLY

1.28

Pharmaceuticals Industry

Max
4.49
Q3
2.77
Median
1.74
Q1
1.26
Min
0.11

LLY’s Current Ratio of 1.28 aligns with the median group of the Pharmaceuticals 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.

LLY vs. RDY: A comparison of their Current Ratio (MRQ) against the Pharmaceuticals industry benchmark.

Debt-to-Equity Ratio (MRQ)

LLY

2.18

Pharmaceuticals Industry

Max
2.44
Q3
1.07
Median
0.42
Q1
0.11
Min
0.00

LLY’s leverage is in the upper quartile of the Pharmaceuticals industry, with a Debt-to-Equity Ratio of 2.18. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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.

LLY vs. RDY: A comparison of their Debt-to-Equity Ratio (MRQ) against the Pharmaceuticals industry benchmark.

Interest Coverage Ratio (TTM)

LLY

20.36

Pharmaceuticals Industry

Max
103.95
Q3
44.18
Median
9.83
Q1
2.82
Min
-42.71

LLY’s Interest Coverage Ratio of 20.36 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.

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.

LLY vs. RDY: A comparison of their Interest Coverage Ratio (TTM) against the Pharmaceuticals industry benchmark.

Financial Strength at a Glance

SymbolLLYRDY
Current Ratio (MRQ)1.281.92
Quick Ratio (MRQ)0.531.37
Debt-to-Equity Ratio (MRQ)2.180.14
Interest Coverage Ratio (TTM)20.3613.50

Growth

Revenue Growth

LLY 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

LLY 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)

LLY

0.77%

Pharmaceuticals Industry

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

LLY’s Dividend Yield of 0.77% is consistent with its peers in the Pharmaceuticals 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.

LLY vs. RDY: A comparison of their Dividend Yield (TTM) against the Pharmaceuticals industry benchmark.

Dividend Payout Ratio (TTM)

LLY

36.46%

Pharmaceuticals Industry

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

LLY’s Dividend Payout Ratio of 36.46% is within the typical range for the Pharmaceuticals 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.

LLY vs. RDY: A comparison of their Dividend Payout Ratio (TTM) against the Pharmaceuticals industry benchmark.

Dividend at a Glance

SymbolLLYRDY
Dividend Yield (TTM)0.77%0.64%
Dividend Payout Ratio (TTM)36.46%53.05%

Valuation

Price-to-Earnings Ratio (TTM)

LLY

47.48

Pharmaceuticals Industry

Max
42.51
Q3
26.88
Median
19.11
Q1
15.12
Min
0.00

At 47.48, LLY’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Pharmaceuticals industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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.

LLY vs. RDY: A comparison of their Price-to-Earnings Ratio (TTM) against the Pharmaceuticals industry benchmark.

Price-to-Sales Ratio (TTM)

LLY

12.30

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

With a P/S Ratio of 12.30, LLY trades at a valuation that eclipses even the highest in the Pharmaceuticals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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.

LLY vs. RDY: A comparison of their Price-to-Sales Ratio (TTM) against the Pharmaceuticals industry benchmark.

Price-to-Book Ratio (MRQ)

LLY

40.43

Pharmaceuticals Industry

Max
9.78
Q3
4.96
Median
2.23
Q1
1.46
Min
0.60

At 40.43, LLY’s P/B Ratio is at an extreme premium to the Pharmaceuticals industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

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.

LLY vs. RDY: A comparison of their Price-to-Book Ratio (MRQ) against the Pharmaceuticals industry benchmark.

Valuation at a Glance

SymbolLLYRDY
Price-to-Earnings Ratio (TTM)47.4818.29
Price-to-Sales Ratio (TTM)12.303.10
Price-to-Book Ratio (MRQ)40.432.84
Price-to-Free Cash Flow Ratio (TTM)326.0386.35