WallStSmart

Dr. Reddy’s Laboratories Ltd ADR (RDY)vsUnited Therapeutics Corporation (UTHR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dr. Reddy’s Laboratories Ltd ADR generates 10766% more annual revenue ($345.83B vs $3.18B). UTHR leads profitability with a 41.9% profit margin vs 16.4%. UTHR appears more attractively valued with a PEG of 2.18. UTHR earns a higher WallStSmart Score of 67/100 (B-).

RDY

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 4.7Quality: 7.5
Piotroski: 2/9Altman Z: 3.68

UTHR

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 10.0Quality: 7.8
Piotroski: 5/9Altman Z: 7.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RDYSignificantly Overvalued (-190.0%)

Margin of Safety

-190.0%

Fair Value

$4.90

Current Price

$13.87

$8.97 premium

UndervaluedFair: $4.90Overvalued
UTHRUndervalued (+62.9%)

Margin of Safety

+62.9%

Fair Value

$1282.02

Current Price

$541.60

$740.42 discount

UndervaluedFair: $1282.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RDY4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
3.6810/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.59B8/10

Generating 3.6B in free cash flow

UTHR4 strengths · Avg: 9.5/10
Profit MarginProfitability
41.9%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
45.0%10/10

Strong operational efficiency at 45.0%

Altman Z-ScoreHealth
7.3010/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
24.5%8/10

Earnings expanding 24.5% YoY

Areas to Watch

RDY4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.752/10

Expensive relative to growth rate

EPS GrowthGrowth
-14.3%2/10

Earnings declined 14.3%

UTHR1 concerns · Avg: 4.0/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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 : UTHR

The strongest argument for UTHR centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 41.9% and operating margin at 45.0%.

Bear Case : RDY

The primary concerns for RDY are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : UTHR

The primary concerns for UTHR are PEG Ratio.

Key Dynamics to Monitor

RDY profiles as a value stock while UTHR is a mature play — different risk/reward profiles.

UTHR carries more volatility with a beta of 0.86 — expect wider price swings.

UTHR is growing revenue faster at 7.4% — sustainability is the question.

RDY generates stronger free cash flow (3.6B), providing more financial flexibility.

Bottom Line

UTHR scores higher overall (67/100 vs 53/100), backed by strong 41.9% margins. 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.

United Therapeutics Corporation

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

United Therapeutics Corporation, a biotechnology company, is dedicated to the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company is headquartered in Silver Spring, Maryland.

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