Dr. Reddy’s Laboratories Ltd ADR (RDY)vsTakeda Pharmaceutical Co Ltd ADR (TAK)
RDY
Dr. Reddy’s Laboratories Ltd ADR
$13.87
+3.12%
HEALTHCARE · Cap: $11.20B
TAK
Takeda Pharmaceutical Co Ltd ADR
$18.29
+1.39%
HEALTHCARE · Cap: $56.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Takeda Pharmaceutical Co Ltd ADR generates 1191% more annual revenue ($4.46T vs $345.83B). RDY leads profitability with a 16.4% profit margin vs 2.5%. TAK appears more attractively valued with a PEG of 0.39. TAK earns a higher WallStSmart Score of 60/100 (C).
RDY
Buy53
out of 100
Grade: C-
TAK
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-190.0%
Fair Value
$4.90
Current Price
$13.87
$8.97 premium
Margin of Safety
-77.5%
Fair Value
$10.30
Current Price
$18.29
$7.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Reasonable price relative to book value
Generating 3.6B in free cash flow
Growing faster than its price suggests
Reasonable price relative to book value
Generating 317.5B in free cash flow
Large-cap with strong market position
Areas to Watch
4.4% revenue growth
Weak financial health signals
Expensive relative to growth rate
Earnings declined 14.3%
4.2% revenue growth
3.3% earnings growth
ROE of 1.5% — below average capital efficiency
2.5% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : RDY
The strongest argument for RDY centers on Altman Z-Score, Debt/Equity, Price/Book. Profitability is solid with margins at 16.4% and operating margin at 16.4%.
Bull Case : TAK
The strongest argument for TAK centers on PEG Ratio, Price/Book, Free Cash Flow. PEG of 0.39 suggests the stock is reasonably priced for its growth.
Bear Case : RDY
The primary concerns for RDY are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : TAK
The primary concerns for TAK are Revenue Growth, EPS Growth, Return on Equity. A P/E of 82.0x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
RDY carries more volatility with a beta of 0.31 — expect wider price swings.
RDY is growing revenue faster at 4.4% — sustainability is the question.
TAK generates stronger free cash flow (317.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TAK scores higher overall (60/100 vs 53/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
Takeda Pharmaceutical Co Ltd ADR
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Takeda Pharmaceutical Company Limited is engaged in the research, development, manufacture and marketing of pharmaceuticals, over-the-counter drugs and quasi-drug consumer products, and other health care products. The company is headquartered in Tokyo, Japan.
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