Dr. Reddy’s Laboratories Ltd ADR (RDY)vsTeva Pharma Industries Ltd ADR (TEVA)
RDY
Dr. Reddy’s Laboratories Ltd ADR
$13.87
+3.12%
HEALTHCARE · Cap: $11.20B
TEVA
Teva Pharma Industries Ltd ADR
$29.46
+1.10%
HEALTHCARE · Cap: $33.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Dr. Reddy’s Laboratories Ltd ADR generates 1904% more annual revenue ($345.83B vs $17.26B). RDY leads profitability with a 16.4% profit margin vs 8.2%. TEVA appears more attractively valued with a PEG of 1.43. TEVA earns a higher WallStSmart Score of 73/100 (B).
RDY
Buy53
out of 100
Grade: C-
TEVA
Strong Buy73
out of 100
Grade: B
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
+39.4%
Fair Value
$56.63
Current Price
$29.46
$27.17 discount
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 21 in profit
Strong operational efficiency at 27.3%
Earnings expanding 40.0% YoY
Generating 1.0B in free cash flow
Areas to Watch
4.4% revenue growth
Weak financial health signals
Expensive relative to growth rate
Earnings declined 14.3%
Distress zone — elevated risk
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 : TEVA
The strongest argument for TEVA centers on Return on Equity, Operating Margin, EPS Growth. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.43 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 : TEVA
The primary concerns for TEVA are Altman Z-Score.
Key Dynamics to Monitor
TEVA carries more volatility with a beta of 0.72 — expect wider price swings.
TEVA is growing revenue faster at 11.4% — 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
TEVA scores higher overall (73/100 vs 53/100) and 11.4% revenue growth. Both earn "Strong 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.
Teva Pharma Industries Ltd ADR
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic drugs, specialty drugs, and biopharmaceuticals in North America, Europe, and internationally. The company is headquartered in Petach Tikva, Israel.
Compare with Other DRUG MANUFACTURERS - SPECIALTY & GENERIC Stocks
Want to dig deeper into these stocks?