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MRK vs. RDY: Merck vs. Dr. Reddy's Laboratories Stock Comparison

How do Merck (MRK) and Dr. Reddy's Laboratories (RDY) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Merck (MRK) and Dr. Reddy's Laboratories (RDY) are both classified in the Pharmaceuticals sub-industry within the broader Pharmaceuticals industry, placing them in the closest GICS peer bucket.

Merck (MRK) trades as ordinary local shares, while Dr. Reddy's Laboratories (RDY) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Merck (MRK) and Dr. Reddy's Laboratories (RDY)
Profile ItemMRKRDY
NameMerck & Co., Inc.Dr. Reddy's Laboratories Ltd. ADR
Country/RegionUnited StatesIndia
GICS SectorHealth CareHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life SciencesPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticalsPharmaceuticals
GICS Sub-IndustryPharmaceuticalsPharmaceuticals
Market Capitalization361.73 billion USD12.43 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962April 11, 2001
Security TypeCommon StockADR

Price Performance

Cumulative Growth

MRK
RDY
GSPC
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Merck (MRK) and Dr. Reddy's Laboratories (RDY). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Merck (MRK) and Dr. Reddy's Laboratories (RDY). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Merck (MRK) and Dr. Reddy's Laboratories (RDY)
MetricMRKRDY
Total Return (1Y)76.14%12.49%
Total Return (3Y, Annualized)16.48%5.76%
Total Return (5Y, Annualized)15.77%4.06%

Risk Profile

Drawdown History

MRK
RDY
GSPC
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Merck (MRK) and Dr. Reddy's Laboratories (RDY). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Merck (MRK) and Dr. Reddy's Laboratories (RDY)
MetricMRKRDY
Volatility (1Y, Annualized)30.24%27.06%
Beta (5Y)0.110.30
Max Drawdown (5Y)-43.44%-32.01%
Avg. Volume (3M)10.24M2.89M

Risk-Adjusted Performance

Risk-Return Positioning

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MRK and RDY are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Merck (MRK) and Dr. Reddy's Laboratories (RDY)
MetricMRKRDY
Sharpe Ratio (1Y)2.380.30
Sortino Ratio (1Y)4.330.43

Profitability

ROE (TTM)

Dr. Reddy's Laboratories (RDY) at 7.34% sits in the top ROE quartile, while Merck (MRK) at 5.06% is closer to the peer norm — stronger capital efficiency for RDY.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.06%

Max
109.18%
Q3
6.23%
MRK
5.06%
Median
-26.66%
Q1
-64.05%
Min
-167.77%

RDY

Pharmaceuticals, Biotechnology & Life Sciences industry group

7.34%

Max
109.18%
RDY
7.34%
Q3
6.23%
Median
-26.66%
Q1
-64.05%
Min
-167.77%
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their ROE against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Net Margin (TTM)

Dr. Reddy's Laboratories (RDY) at 8.49% retains a top-quartile share of revenue as profit, ahead of Merck (MRK) at 3.64%, which keeps about the industry-typical share.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

3.64%

Max
18.05%
Q3
4.78%
MRK
3.64%
Median
0.00%
Q1
-4.14%
Min
-17.05%

RDY

Pharmaceuticals, Biotechnology & Life Sciences industry group

8.49%

Max
18.05%
RDY
8.49%
Q3
4.78%
Median
0.00%
Q1
-4.14%
Min
-17.05%
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their net margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Operating Margin (TTM)

Merck (MRK) at 35.22% operates in the top operating margin quartile, ahead of Dr. Reddy's Laboratories (RDY) at 14.73%, which runs around its industry’s norm.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

35.22%

Max
83.12%
MRK
35.22%
Q3
14.77%
Median
0.00%
Q1
-78.82%
Min
-207.40%

RDY

Pharmaceuticals, Biotechnology & Life Sciences industry group

14.73%

Max
83.12%
Q3
14.77%
RDY
14.73%
Median
0.00%
Q1
-78.82%
Min
-207.40%
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their operating margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Profitability Metrics

Profitability metrics for Merck (MRK) and Dr. Reddy's Laboratories (RDY)
MetricMRKRDY
ROE (TTM)5.06%7.34%
ROA (TTM)11.29%3.37%
Net Margin (TTM)3.64%8.49%
Operating Margin (TTM)35.22%14.73%
Gross Margin (TTM)75.20%49.49%

Growth

Revenue Growth

Both Merck (MRK) at 1.31% and Dr. Reddy's Laboratories (RDY) at 3.19% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Merck (MRK) at 8.01% and Dr. Reddy's Laboratories (RDY) at -24.14% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Merck (MRK) and Dr. Reddy's Laboratories (RDY)
MetricMRKRDY
Revenue Growth (YoY)1.31%3.19%
Revenue Growth (3Y CAGR)3.12%10.96%
EPS Growth (YoY)8.01%-24.14%
EPS Growth (3Y CAGR)8.43%-1.72%

Financial Strength

Current Ratio (MRQ)

Both Merck (MRK) at 1.35 and Dr. Reddy's Laboratories (RDY) at 1.93 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.35

Max
25.13
Q3
12.13
Median
5.52
Q1
2.47
MRK
1.35
Min
0.10

RDY

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.93

Max
25.13
Q3
12.13
Median
5.52
Q1
2.47
RDY
1.93
Min
0.10
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their current ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Debt / Equity (MRQ)

Dr. Reddy's Laboratories (RDY) at 0.19 carries an industry-typical debt-to-equity mix, while Merck (MRK) at 1.20 uses more debt funding than most peers.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.20

Max
1.42
MRK
1.20
Q3
0.65
Median
0.15
Q1
0.02
Min
0.00

RDY

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.19

Max
1.42
Q3
0.65
RDY
0.19
Median
0.15
Q1
0.02
Min
0.00
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their debt-to-equity ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Merck (MRK) and Dr. Reddy's Laboratories (RDY)
MetricMRKRDY
Current Ratio (MRQ)1.351.93
Debt / Equity (MRQ)1.200.19
Net Debt / EBITDA1.50-0.08

Dividends

Dividend Yield (TTM)

Both Merck (MRK) at 2.29% and Dr. Reddy's Laboratories (RDY) at 55.06% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.29%

MRK
2.29%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

RDY

Pharmaceuticals, Biotechnology & Life Sciences industry group

55.06%

RDY
55.06%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their dividend yield against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Payout Ratio (TTM)

Merck (MRK) reports payout ratio above 100% at 343.43%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Dr. Reddy's Laboratories (RDY) reports 22.72%, ranking against industry peers normally.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

343.43%

MRK
343.43%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

RDY

Pharmaceuticals, Biotechnology & Life Sciences industry group

22.72%

RDY
22.72%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their payout ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Metrics

Dividend metrics for Merck (MRK) and Dr. Reddy's Laboratories (RDY)
MetricMRKRDY
Dividend Yield (TTM)2.29%55.06%
Dividend Payout Ratio (TTM)343.43%22.72%

Valuation

P/E Ratio (TTM)

Dr. Reddy's Laboratories (RDY) at 41.42 is near its industry’s usual P/E ratio, while Merck (MRK) at 148.21 sits above its peer range — an unusually expensive price for MRK’s trailing earnings.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

148.21

MRK
148.21
Max
85.34
Q3
43.46
Median
26.69
Q1
13.30
Min
0.07

RDY

Pharmaceuticals, Biotechnology & Life Sciences industry group

41.42

Max
85.34
Q3
43.46
RDY
41.42
Median
26.69
Q1
13.30
Min
0.07
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their P/E ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/S Ratio (TTM)

Dr. Reddy's Laboratories (RDY) at 0.04 sits in the cheaper P/S ratio quartile while Merck (MRK) at 5.37 prices around its industry’s middle — RDY costs less per dollar of sales, though read it alongside growth and margins.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.37

Max
58.18
Q3
25.77
Median
7.30
MRK
5.37
Q1
3.01
Min
0.01

RDY

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.04

Max
58.18
Q3
25.77
Median
7.30
Q1
3.01
RDY
0.04
Min
0.01
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their P/S ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Merck (MRK) at 8.06 sits in the upper P/B ratio quartile, and Dr. Reddy's Laboratories (RDY) at 18.16 prices even higher, above its industry range.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

8.06

Max
13.53
MRK
8.06
Q3
6.54
Median
3.25
Q1
1.69
Min
-5.59

RDY

Pharmaceuticals, Biotechnology & Life Sciences industry group

18.16

RDY
18.16
Max
13.53
Q3
6.54
Median
3.25
Q1
1.69
Min
-5.59
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Merck (MRK) vs. Dr. Reddy's Laboratories (RDY): A comparison of their P/B ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Valuation Metrics

Valuation metrics for Merck (MRK) and Dr. Reddy's Laboratories (RDY)
MetricMRKRDY
P/E Ratio (TTM)148.2141.42
P/S Ratio (TTM)5.370.04
P/B Ratio (MRQ)8.0618.16
Free Cash Flow Yield (TTM)3.88%-53.03%