NVS vs. RDY: Novartis vs. Dr. Reddy's Laboratories Stock Comparison

November 11, 2026

How do Novartis (NVS) 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

Novartis (NVS) 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.

Both Novartis (NVS) and Dr. Reddy's Laboratories (RDY) trade as ADRs — their core financials are comparable, but keep FX, depositary-program fees, and dividend withholding in view for each.

Company profile comparison for Novartis (NVS) and Dr. Reddy's Laboratories (RDY)
Profile Item	NVS	RDY
Name	Novartis AG Sponsored ADR	Dr. Reddy's Laboratories Ltd. ADR
Country/Region	Switzerland	India
GICS Sector	Health Care	Health Care
GICS Industry Group	Pharmaceuticals, Biotechnology & Life Sciences	Pharmaceuticals, Biotechnology & Life Sciences
GICS Industry	Pharmaceuticals	Pharmaceuticals
GICS Sub-Industry	Pharmaceuticals	Pharmaceuticals
Market Capitalization	307.00 billion USD	12.43 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	November 7, 1996	April 11, 2001
Security Type	ADR	ADR

Price Performance

Cumulative Growth

NVS

RDY

GSPC

Novartis (NVS) 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 Novartis (NVS) and Dr. Reddy's Laboratories (RDY). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Novartis (NVS) 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 Novartis (NVS) and Dr. Reddy's Laboratories (RDY)
Metric	NVS	RDY
Total Return (1Y)	32.98%	12.49%
Total Return (3Y, Annualized)	24.72%	5.76%
Total Return (5Y, Annualized)	18.80%	4.06%

Risk Profile

Drawdown History

NVS

RDY

GSPC

Novartis (NVS) 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 Novartis (NVS) 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 Novartis (NVS) and Dr. Reddy's Laboratories (RDY)
Metric	NVS	RDY
Volatility (1Y, Annualized)	27.12%	27.06%
Beta (5Y)	0.41	0.30
Max Drawdown (5Y)	-20.42%	-32.01%
Avg. Volume (3M)	2.07M	2.89M

Risk-Adjusted Performance

Risk-Return Positioning

NVS 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 Novartis (NVS) and Dr. Reddy's Laboratories (RDY)
Metric	NVS	RDY
Sharpe Ratio (1Y)	1.06	0.30
Sortino Ratio (1Y)	1.46	0.43

Profitability

ROE (TTM)

Both Novartis (NVS) at 24.33% and Dr. Reddy's Laboratories (RDY) at 7.34% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

24.33%

Max: 109.18%
NVS: 24.33%
Q3: 6.23%
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%

Novartis (NVS) vs. Dr. Reddy's Laboratories (RDY): A comparison of their ROE against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Novartis (NVS) at 17.49% and Dr. Reddy's Laboratories (RDY) at 8.49% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

17.49%

Max: 18.05%
NVS: 17.49%
Q3: 4.78%
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%

Novartis (NVS) vs. Dr. Reddy's Laboratories (RDY): A comparison of their net margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Operating Margin (TTM)

Novartis (NVS) at 34.27% operates in the top operating margin quartile, ahead of Dr. Reddy's Laboratories (RDY) at 14.73%, which runs around its industry’s norm.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

34.27%

Max: 83.12%
NVS: 34.27%
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%

Novartis (NVS) 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 Novartis (NVS) and Dr. Reddy's Laboratories (RDY)
Metric	NVS	RDY
ROE (TTM)	24.33%	7.34%
ROA (TTM)	10.86%	3.37%
Net Margin (TTM)	17.49%	8.49%
Operating Margin (TTM)	34.27%	14.73%
Gross Margin (TTM)	75.21%	49.49%

Growth

Revenue Growth

Both Novartis (NVS) at 9.57% 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.

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

EPS Growth

Both Novartis (NVS) at 21.81% 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.

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

Growth Metrics

Growth metrics for Novartis (NVS) and Dr. Reddy's Laboratories (RDY)
Metric	NVS	RDY
Revenue Growth (YoY)	9.57%	3.19%
Revenue Growth (3Y CAGR)	9.25%	10.96%
EPS Growth (YoY)	21.81%	-24.14%
EPS Growth (3Y CAGR)	31.14%	-1.72%

Financial Strength

Current Ratio (MRQ)

Both Novartis (NVS) at 0.88 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.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.88

Max: 25.13
Q3: 12.13
Median: 5.52
Q1: 2.47
NVS: 0.88
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

Novartis (NVS) 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 Novartis (NVS) at 1.29 uses more debt funding than most peers.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.29

Max: 1.42
NVS: 1.29
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

Novartis (NVS) 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 Novartis (NVS) and Dr. Reddy's Laboratories (RDY)
Metric	NVS	RDY
Current Ratio (MRQ)	0.88	1.93
Debt / Equity (MRQ)	1.29	0.19
Net Debt / EBITDA	1.64	-0.08

Dividends

Dividend Yield (TTM)

Both Novartis (NVS) at 2.88% 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.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.88%

NVS: 2.88%
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%

Novartis (NVS) 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)

Both Novartis (NVS) at 90.46% and Dr. Reddy's Laboratories (RDY) at 22.72% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

90.46%

NVS: 90.46%
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%

Novartis (NVS) 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 Novartis (NVS) and Dr. Reddy's Laboratories (RDY)
Metric	NVS	RDY
Dividend Yield (TTM)	2.88%	55.06%
Dividend Payout Ratio (TTM)	90.46%	22.72%

Valuation

P/E Ratio (TTM)

Both Novartis (NVS) at 31.02 and Dr. Reddy's Laboratories (RDY) at 41.42 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

31.02

Max: 85.34
Q3: 43.46
NVS: 31.02
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

Novartis (NVS) 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 Novartis (NVS) at 5.35 prices around its industry’s middle — RDY costs less per dollar of sales, though read it alongside growth and margins.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.35

Max: 58.18
Q3: 25.77
Median: 7.30
NVS: 5.35
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

Novartis (NVS) 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: Novartis (NVS) at 8.25 sits in the upper P/B ratio quartile, and Dr. Reddy's Laboratories (RDY) at 18.16 prices even higher, above its industry range.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

8.25

Max: 13.53
NVS: 8.25
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

Novartis (NVS) 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 Novartis (NVS) and Dr. Reddy's Laboratories (RDY)
Metric	NVS	RDY
P/E Ratio (TTM)	31.02	41.42
P/S Ratio (TTM)	5.35	0.04
P/B Ratio (MRQ)	8.25	18.16
Free Cash Flow Yield (TTM)	3.67%	-53.03%