WallStSmart

Eli Lilly and Company (LLY)vsDr. Reddy’s Laboratories Ltd ADR (RDY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dr. Reddy’s Laboratories Ltd ADR generates 365% more annual revenue ($335.93B vs $72.25B). LLY leads profitability with a 35.0% profit margin vs 12.8%. LLY appears more attractively valued with a PEG of 1.45. LLY earns a higher WallStSmart Score of 78/100 (B+).

LLY

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.06

RDY

Hold

48

out of 100

Grade: D+

Growth: 4.0Profit: 5.5Value: 5.0Quality: 7.5
Piotroski: 2/9Altman Z: 3.18

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$948.95B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
81.0%10/10

Every $100 of equity generates 81 in profit

Profit MarginProfitability
35.0%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
49.4%10/10

Strong operational efficiency at 49.4%

Revenue GrowthGrowth
55.5%10/10

Revenue surging 55.5% year-over-year

EPS GrowthGrowth
169.9%10/10

Earnings expanding 169.9% YoY

RDY3 strengths · Avg: 9.7/10
Free Cash FlowQuality
$10.75B10/10

Generating 10.7B in free cash flow

Altman Z-ScoreHealth
3.1810/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Areas to Watch

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.393/10

Elevated debt levels

Price/BookValuation
32.4x2/10

Trading at 32.4x book value

RDY4 concerns · Avg: 3.5/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

Price/BookValuation
16.8x4/10

Trading at 16.8x book value

Operating MarginProfitability
1.5%3/10

Operating margin of 1.5%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 35.0% and operating margin at 49.4%. Revenue growth of 55.5% demonstrates continued momentum.

Bull Case : RDY

The strongest argument for RDY centers on Free Cash Flow, Altman Z-Score, Debt/Equity.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book.

Bear Case : RDY

The primary concerns for RDY are PEG Ratio, Price/Book, Operating Margin.

Key Dynamics to Monitor

LLY profiles as a growth stock while RDY is a declining play — different risk/reward profiles.

LLY carries more volatility with a beta of 0.48 — expect wider price swings.

LLY is growing revenue faster at 55.5% — sustainability is the question.

RDY generates stronger free cash flow (10.7B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (78/100 vs 48/100), backed by strong 35.0% margins and 55.5% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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Dr. Reddy’s Laboratories Ltd ADR

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Dr. Reddy's Laboratories Limited is a globally integrated pharmaceutical company. The company is headquartered in Hyderabad, India.

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