RDY vs. VRTX: Dr. Reddy's Laboratories vs. Vertex Pharmaceuticals Stock Comparison
How do Dr. Reddy's Laboratories (RDY) and Vertex Pharmaceuticals (VRTX) 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
Dr. Reddy's Laboratories (RDY) and Vertex Pharmaceuticals (VRTX) both fall under the Pharmaceuticals, Biotechnology & Life Sciences industry group, but RDY is classified in Pharmaceuticals while VRTX is classified in Biotechnology.
Vertex Pharmaceuticals (VRTX) 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.
| Profile Item | RDY | VRTX |
|---|---|---|
| Name | Dr. Reddy's Laboratories Ltd. ADR | Vertex Pharmaceuticals Incorporated Common Stock |
| Country/Region | India | United States |
| GICS Sector | Health Care | Health Care |
| GICS Industry Group | Pharmaceuticals, Biotechnology & Life Sciences | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Pharmaceuticals | Biotechnology |
| GICS Sub-Industry | Pharmaceuticals | Biotechnology |
| Market Capitalization | 12.43 billion USD | 138.71 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | April 11, 2001 | July 24, 1991 |
| Security Type | ADR | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | RDY | VRTX |
|---|---|---|
| Total Return (1Y) | 12.49% | 34.89% |
| Total Return (3Y, Annualized) | 5.76% | 14.44% |
| Total Return (5Y, Annualized) | 4.06% | 23.65% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | RDY | VRTX |
|---|---|---|
| Volatility (1Y, Annualized) | 27.06% | 29.73% |
| Beta (5Y) | 0.30 | 0.29 |
| Max Drawdown (5Y) | -32.01% | -29.07% |
| Avg. Volume (3M) | 2.89M | 1.25M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | RDY | VRTX |
|---|---|---|
| Sharpe Ratio (1Y) | 0.30 | 1.03 |
| Sortino Ratio (1Y) | 0.43 | 1.68 |
Profitability
ROE (TTM)
Both Dr. Reddy's Laboratories (RDY) at 7.34% and Vertex Pharmaceuticals (VRTX) at 20.80% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.
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%
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
20.80%
- Max
- 109.18%
- VRTX
- 20.80%
- Q3
- 6.23%
- Median
- -26.66%
- Q1
- -64.05%
- Min
- -167.77%
Net Margin (TTM)
Vertex Pharmaceuticals (VRTX) at 30.70% keeps the most of each sales dollar — above its industry’s net margin range — and Dr. Reddy's Laboratories (RDY) at 8.49% also retains a top-quartile share.
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%
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
30.70%
- VRTX
- 30.70%
- Max
- 18.05%
- Q3
- 4.78%
- Median
- 0.00%
- Q1
- -4.14%
- Min
- -17.05%
Operating Margin (TTM)
Vertex Pharmaceuticals (VRTX) at 35.57% operates in the top operating margin quartile, ahead of Dr. Reddy's Laboratories (RDY) at 14.73%, which runs around its industry’s norm.
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%
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
35.57%
- Max
- 83.12%
- VRTX
- 35.57%
- Q3
- 14.77%
- Median
- 0.00%
- Q1
- -78.82%
- Min
- -207.40%
Profitability Metrics
| Metric | RDY | VRTX |
|---|---|---|
| ROE (TTM) | 7.34% | 20.80% |
| ROA (TTM) | 3.37% | 10.62% |
| Net Margin (TTM) | 8.49% | 30.70% |
| Operating Margin (TTM) | 14.73% | 35.57% |
| Gross Margin (TTM) | 49.49% | 54.81% |
Growth
Revenue Growth
Both Dr. Reddy's Laboratories (RDY) at 3.19% and Vertex Pharmaceuticals (VRTX) at 8.90% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Only one side can be read here: Dr. Reddy's Laboratories (RDY) reports EPS growth of -24.14%, ranked against its industry; Vertex Pharmaceuticals (VRTX) has no EPS growth figure this period.
Growth Metrics
| Metric | RDY | VRTX |
|---|---|---|
| Revenue Growth (YoY) | 3.19% | 8.90% |
| Revenue Growth (3Y CAGR) | 10.96% | 10.35% |
| EPS Growth (YoY) | -24.14% | -- |
| EPS Growth (3Y CAGR) | -1.72% | 6.12% |
Financial Strength
Current Ratio (MRQ)
Both Dr. Reddy's Laboratories (RDY) at 1.93 and Vertex Pharmaceuticals (VRTX) at 2.34 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
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
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
2.34
- Max
- 25.13
- Q3
- 12.13
- Median
- 5.52
- Q1
- 2.47
- VRTX
- 2.34
- Min
- 0.10
Debt / Equity (MRQ)
Both Dr. Reddy's Laboratories (RDY) at 0.19 and Vertex Pharmaceuticals (VRTX) at 0.31 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
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
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.31
- Max
- 1.42
- Q3
- 0.65
- VRTX
- 0.31
- Median
- 0.15
- Q1
- 0.02
- Min
- 0.00
Financial Strength Metrics
| Metric | RDY | VRTX |
|---|---|---|
| Current Ratio (MRQ) | 1.93 | 2.34 |
| Debt / Equity (MRQ) | 0.19 | 0.31 |
| Net Debt / EBITDA | -0.08 | 0.03 |
Dividends
Dividend Yield (TTM)
Vertex Pharmaceuticals (VRTX) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Dr. Reddy's Laboratories (RDY) reports a yield of 55.06%, ranking against industry peers normally.
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%
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.00%
- VRTX
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Vertex Pharmaceuticals (VRTX) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Dr. Reddy's Laboratories (RDY) reports a payout of 22.72%, ranking against industry peers normally.
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%
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.00%
- VRTX
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | RDY | VRTX |
|---|---|---|
| Dividend Yield (TTM) | 55.06% | 0.00% |
| Dividend Payout Ratio (TTM) | 22.72% | 0.00% |
Valuation
P/E Ratio (TTM)
Both Dr. Reddy's Laboratories (RDY) at 41.42 and Vertex Pharmaceuticals (VRTX) at 35.21 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
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
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
35.21
- Max
- 85.34
- Q3
- 43.46
- VRTX
- 35.21
- Median
- 26.69
- Q1
- 13.30
- Min
- 0.07
P/S Ratio (TTM)
Dr. Reddy's Laboratories (RDY) at 0.04 sits in the cheaper P/S ratio quartile while Vertex Pharmaceuticals (VRTX) at 10.71 prices around its industry’s middle — RDY costs less per dollar of sales, though read it alongside growth and margins.
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
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
10.71
- Max
- 58.18
- Q3
- 25.77
- VRTX
- 10.71
- Median
- 7.30
- Q1
- 3.01
- Min
- 0.01
P/B Ratio (MRQ)
Both look rich against book: Vertex Pharmaceuticals (VRTX) at 6.63 sits in the upper P/B ratio quartile, and Dr. Reddy's Laboratories (RDY) at 18.16 prices even higher, above its industry range.
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
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
6.63
- Max
- 13.53
- VRTX
- 6.63
- Q3
- 6.54
- Median
- 3.25
- Q1
- 1.69
- Min
- -5.59
Valuation Metrics
| Metric | RDY | VRTX |
|---|---|---|
| P/E Ratio (TTM) | 41.42 | 35.21 |
| P/S Ratio (TTM) | 0.04 | 10.71 |
| P/B Ratio (MRQ) | 18.16 | 6.63 |
| Free Cash Flow Yield (TTM) | -53.03% | 1.69% |