MCK vs. RDY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MCK and RDY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
MCK is a standard domestic listing, while RDY trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
| Symbol | MCK | RDY |
|---|---|---|
| Company Name | McKesson Corporation | Dr. Reddy's Laboratories Limited |
| Country | United States | India |
| GICS Sector | Health Care | Health Care |
| GICS Industry | Health Care Providers & Services | Pharmaceuticals |
| Market Capitalization | 84.45 billion USD | 12.18 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 10, 1994 | April 11, 2001 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of MCK 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.
Historical Performance at a Glance
| Symbol | MCK | RDY |
|---|---|---|
| 5-Day Price Return | 0.30% | 3.12% |
| 13-Week Price Return | -4.46% | 3.37% |
| 26-Week Price Return | 12.64% | 5.00% |
| 52-Week Price Return | 21.04% | -8.03% |
| Month-to-Date Return | -2.11% | 1.33% |
| Year-to-Date Return | 19.13% | -7.43% |
| 10-Day Avg. Volume | 0.83M | 1.26M |
| 3-Month Avg. Volume | 0.86M | 1.67M |
| 3-Month Volatility | 22.24% | 19.64% |
| Beta | 0.51 | -0.15 |
Profitability
Return on Equity (TTM)
MCK
39.43%
Health Care Providers & Services Industry
- Max
- 26.03%
- Q3
- 13.74%
- Median
- 8.26%
- Q1
- 4.13%
- Min
- -3.62%
MCK’s Return on Equity of 39.43% is exceptionally high, placing it well beyond the typical range for the Health Care Providers & Services 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.
Net Profit Margin (TTM)
MCK
0.92%
Health Care Providers & Services Industry
- Max
- 12.40%
- Q3
- 5.93%
- Median
- 1.96%
- Q1
- 0.93%
- Min
- -6.10%
Falling into the lower quartile for the Health Care Providers & Services industry, MCK’s Net Profit Margin of 0.92% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
Operating Profit Margin (TTM)
MCK
1.23%
Health Care Providers & Services Industry
- Max
- 19.05%
- Q3
- 10.21%
- Median
- 4.22%
- Q1
- 1.98%
- Min
- -4.27%
MCK’s Operating Profit Margin of 1.23% is in the lower quartile for the Health Care Providers & Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
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.
Profitability at a Glance
| Symbol | MCK | RDY |
|---|---|---|
| Return on Equity (TTM) | 39.43% | 8.86% |
| Return on Assets (TTM) | 4.54% | 5.93% |
| Net Profit Margin (TTM) | 0.92% | 16.95% |
| Operating Profit Margin (TTM) | 1.23% | 20.17% |
| Gross Profit Margin (TTM) | 3.59% | 68.36% |
Financial Strength
Current Ratio (MRQ)
MCK
0.90
Health Care Providers & Services Industry
- Max
- 2.01
- Q3
- 1.49
- Median
- 1.30
- Q1
- 0.94
- Min
- 0.17
MCK’s Current Ratio of 0.90 falls into the lower quartile for the Health Care Providers & Services 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
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.
Debt-to-Equity Ratio (MRQ)
MCK
1.29
Health Care Providers & Services Industry
- Max
- 2.17
- Q3
- 1.18
- Median
- 0.74
- Q1
- 0.45
- Min
- 0.00
MCK’s leverage is in the upper quartile of the Health Care Providers & Services industry, with a Debt-to-Equity Ratio of 1.29. 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.
Interest Coverage Ratio (TTM)
MCK
17.45
Health Care Providers & Services Industry
- Max
- 14.47
- Q3
- 7.15
- Median
- 5.45
- Q1
- 2.04
- Min
- -4.44
With an Interest Coverage Ratio of 17.45, MCK demonstrates a superior capacity to service its debt, placing it well above the typical range for the Health Care Providers & Services industry. This stems from either robust earnings or a conservative debt load.
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.
Financial Strength at a Glance
| Symbol | MCK | RDY |
|---|---|---|
| Current Ratio (MRQ) | 0.90 | 1.92 |
| Quick Ratio (MRQ) | 0.51 | 1.37 |
| Debt-to-Equity Ratio (MRQ) | 1.29 | 0.14 |
| Interest Coverage Ratio (TTM) | 17.45 | 13.50 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MCK
0.40%
Health Care Providers & Services Industry
- Max
- 5.38%
- Q3
- 2.22%
- Median
- 0.55%
- Q1
- 0.00%
- Min
- 0.00%
MCK’s Dividend Yield of 0.40% is consistent with its peers in the Health Care Providers & Services 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.
Dividend Payout Ratio (TTM)
MCK
10.47%
Health Care Providers & Services Industry
- Max
- 186.69%
- Q3
- 74.82%
- Median
- 26.76%
- Q1
- 0.00%
- Min
- 0.00%
MCK’s Dividend Payout Ratio of 10.47% is within the typical range for the Health Care Providers & Services 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.
Dividend at a Glance
| Symbol | MCK | RDY |
|---|---|---|
| Dividend Yield (TTM) | 0.40% | 0.64% |
| Dividend Payout Ratio (TTM) | 10.47% | 53.05% |
Valuation
Price-to-Earnings Ratio (TTM)
MCK
26.24
Health Care Providers & Services Industry
- Max
- 55.89
- Q3
- 30.85
- Median
- 21.17
- Q1
- 12.63
- Min
- 0.00
MCK’s P/E Ratio of 26.24 is within the middle range for the Health Care Providers & Services 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
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.
Price-to-Sales Ratio (TTM)
MCK
0.24
Health Care Providers & Services Industry
- Max
- 3.10
- Q3
- 1.74
- Median
- 0.67
- Q1
- 0.24
- Min
- 0.00
MCK’s P/S Ratio of 0.24 aligns with the market consensus for the Health Care Providers & Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
Price-to-Book Ratio (MRQ)
MCK
4.06
Health Care Providers & Services Industry
- Max
- 7.61
- Q3
- 4.32
- Median
- 2.53
- Q1
- 1.14
- Min
- 0.77
MCK’s P/B Ratio of 4.06 is within the conventional range for the Health Care Providers & Services 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.
Valuation at a Glance
| Symbol | MCK | RDY |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 26.24 | 18.29 |
| Price-to-Sales Ratio (TTM) | 0.24 | 3.10 |
| Price-to-Book Ratio (MRQ) | 4.06 | 2.84 |
| Price-to-Free Cash Flow Ratio (TTM) | 9.26 | 86.35 |