Dr. Reddy’s Laboratories Ltd ADR (RDY)vsZoetis Inc (ZTS)
RDY
Dr. Reddy’s Laboratories Ltd ADR
$13.87
+3.12%
HEALTHCARE · Cap: $11.20B
ZTS
Zoetis Inc
$116.71
+0.67%
HEALTHCARE · Cap: $51.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Dr. Reddy’s Laboratories Ltd ADR generates 3553% more annual revenue ($345.83B vs $9.47B). ZTS leads profitability with a 28.2% profit margin vs 16.4%. ZTS appears more attractively valued with a PEG of 1.87. ZTS earns a higher WallStSmart Score of 64/100 (C+).
RDY
Buy53
out of 100
Grade: C-
ZTS
Buy64
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
-29.1%
Fair Value
$99.69
Current Price
$116.71
$17.02 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
Every $100 of equity generates 66 in profit
Strong operational efficiency at 34.7%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Areas to Watch
4.4% revenue growth
Weak financial health signals
Expensive relative to growth rate
Earnings declined 14.3%
Expensive relative to growth rate
Trading at 14.9x book value
3.0% revenue growth
Elevated debt levels
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 : ZTS
The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.2% and operating margin at 34.7%.
Bear Case : RDY
The primary concerns for RDY are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : ZTS
The primary concerns for ZTS are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 2.85 is elevated, increasing financial risk.
Key Dynamics to Monitor
ZTS carries more volatility with a beta of 0.95 — expect wider price swings.
RDY is growing revenue faster at 4.4% — sustainability is the question.
RDY generates stronger free cash flow (3.6B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ZTS scores higher overall (64/100 vs 53/100), backed by strong 28.2% margins. 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.
Zoetis Inc
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Zoetis Inc. is an American drug company, the world's largest producer of medicine and vaccinations for pets and livestock.
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