NVO vs. RDY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at NVO and RDY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Both NVO and RDY are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.
| Symbol | NVO | RDY |
|---|---|---|
| Company Name | Novo Nordisk A/S | Dr. Reddy's Laboratories Limited |
| Country | Denmark | India |
| GICS Sector | Health Care | Health Care |
| GICS Industry | Pharmaceuticals | Pharmaceuticals |
| Market Capitalization | 226.64 billion USD | 11.88 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | April 30, 1981 | April 11, 2001 |
| Security Type | ADR | ADR |
Historical Performance
This chart compares the performance of NVO 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 | NVO | RDY |
|---|---|---|
| 5-Day Price Return | 10.71% | 4.62% |
| 13-Week Price Return | -28.27% | 1.82% |
| 26-Week Price Return | -47.23% | 2.74% |
| 52-Week Price Return | 67.26% | -9.04% |
| Month-to-Date Return | 1.91% | -1.08% |
| Year-to-Date Return | -48.65% | -9.63% |
| 10-Day Avg. Volume | 15.64M | 1.49M |
| 3-Month Avg. Volume | 6.54M | 1.83M |
| 3-Month Volatility | 64.16% | 18.89% |
| Beta | 1.51 | 0.65 |
Profitability
Return on Equity (TTM)
NVO
77.86%
Pharmaceuticals Industry
- Max
- 38.59%
- Q3
- 19.84%
- Median
- 11.90%
- Q1
- 5.63%
- Min
- -9.96%
NVO’s Return on Equity of 77.86% 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.
Net Profit Margin (TTM)
NVO
35.61%
Pharmaceuticals Industry
- Max
- 34.51%
- Q3
- 17.73%
- Median
- 12.12%
- Q1
- 5.99%
- Min
- -7.73%
NVO’s Net Profit Margin of 35.61% is exceptionally high, placing it well beyond the typical range for the Pharmaceuticals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
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)
NVO
45.78%
Pharmaceuticals Industry
- Max
- 41.53%
- Q3
- 23.00%
- Median
- 16.24%
- Q1
- 9.24%
- Min
- -6.94%
NVO’s Operating Profit Margin of 45.78% is exceptionally high, placing it well above the typical range for the Pharmaceuticals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
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 | NVO | RDY |
|---|---|---|
| Return on Equity (TTM) | 77.86% | 8.86% |
| Return on Assets (TTM) | 24.22% | 5.93% |
| Net Profit Margin (TTM) | 35.61% | 16.95% |
| Operating Profit Margin (TTM) | 45.78% | 20.17% |
| Gross Profit Margin (TTM) | 83.95% | 68.36% |
Financial Strength
Current Ratio (MRQ)
NVO
0.78
Pharmaceuticals Industry
- Max
- 4.49
- Q3
- 2.77
- Median
- 1.74
- Q1
- 1.26
- Min
- 0.11
NVO’s Current Ratio of 0.78 falls into the lower quartile for the Pharmaceuticals 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)
NVO
0.59
Pharmaceuticals Industry
- Max
- 2.44
- Q3
- 1.07
- Median
- 0.42
- Q1
- 0.11
- Min
- 0.00
NVO’s Debt-to-Equity Ratio of 0.59 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.
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)
NVO
149.07
Pharmaceuticals Industry
- Max
- 103.95
- Q3
- 44.18
- Median
- 9.83
- Q1
- 2.82
- Min
- -42.71
With an Interest Coverage Ratio of 149.07, NVO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Pharmaceuticals 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 | NVO | RDY |
|---|---|---|
| Current Ratio (MRQ) | 0.78 | 1.92 |
| Quick Ratio (MRQ) | 0.56 | 1.37 |
| Debt-to-Equity Ratio (MRQ) | 0.59 | 0.14 |
| Interest Coverage Ratio (TTM) | 149.07 | 13.50 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
NVO
3.59%
Pharmaceuticals Industry
- Max
- 6.98%
- Q3
- 3.32%
- Median
- 2.13%
- Q1
- 0.14%
- Min
- 0.00%
With a Dividend Yield of 3.59%, NVO offers a more attractive income stream than most of its peers in the Pharmaceuticals industry, signaling a strong commitment to shareholder returns.
RDY
0.65%
Pharmaceuticals Industry
- Max
- 6.98%
- Q3
- 3.32%
- Median
- 2.13%
- Q1
- 0.14%
- Min
- 0.00%
RDY’s Dividend Yield of 0.65% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
NVO
61.60%
Pharmaceuticals Industry
- Max
- 165.20%
- Q3
- 90.59%
- Median
- 49.13%
- Q1
- 28.91%
- Min
- 0.00%
NVO’s Dividend Payout Ratio of 61.60% 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.
Dividend at a Glance
| Symbol | NVO | RDY |
|---|---|---|
| Dividend Yield (TTM) | 3.59% | 0.65% |
| Dividend Payout Ratio (TTM) | 61.60% | 53.05% |
Valuation
Price-to-Earnings Ratio (TTM)
NVO
12.81
Pharmaceuticals Industry
- Max
- 42.51
- Q3
- 26.88
- Median
- 19.11
- Q1
- 15.12
- Min
- 0.00
In the lower quartile for the Pharmaceuticals industry, NVO’s P/E Ratio of 12.81 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
RDY
17.92
Pharmaceuticals Industry
- Max
- 42.51
- Q3
- 26.88
- Median
- 19.11
- Q1
- 15.12
- Min
- 0.00
RDY’s P/E Ratio of 17.92 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)
NVO
4.56
Pharmaceuticals Industry
- Max
- 7.55
- Q3
- 4.54
- Median
- 2.11
- Q1
- 1.52
- Min
- 0.00
NVO’s P/S Ratio of 4.56 is in the upper echelon for the Pharmaceuticals 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
3.04
Pharmaceuticals Industry
- Max
- 7.55
- Q3
- 4.54
- Median
- 2.11
- Q1
- 1.52
- Min
- 0.00
RDY’s P/S Ratio of 3.04 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)
NVO
8.87
Pharmaceuticals Industry
- Max
- 9.78
- Q3
- 4.96
- Median
- 2.23
- Q1
- 1.46
- Min
- 0.60
NVO’s P/B Ratio of 8.87 is in the upper tier for the Pharmaceuticals industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
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 | NVO | RDY |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 12.81 | 17.92 |
| Price-to-Sales Ratio (TTM) | 4.56 | 3.04 |
| Price-to-Book Ratio (MRQ) | 8.87 | 2.84 |
| Price-to-Free Cash Flow Ratio (TTM) | 21.60 | 84.64 |