Critical Contrast: Dr.Reddy’s Laboratories (RDY) & Eidos Therapeutics (EIDX)
Dr.Reddy’s Laboratories (NYSE:RDY) and Eidos Therapeutics (NASDAQ:EIDX) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
This table compares Dr.Reddy’s Laboratories and Eidos Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Dr.Reddy’s Laboratories and Eidos Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dr.Reddy’s Laboratories currently has a consensus target price of $30.51, indicating a potential downside of 12.65%. Eidos Therapeutics has a consensus target price of $30.67, indicating a potential upside of 207.90%. Given Eidos Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Eidos Therapeutics is more favorable than Dr.Reddy’s Laboratories.
Insider and Institutional Ownership
12.3% of Dr.Reddy’s Laboratories shares are owned by institutional investors. Comparatively, 23.0% of Eidos Therapeutics shares are owned by institutional investors. 2.0% of Dr.Reddy’s Laboratories shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Dr.Reddy’s Laboratories and Eidos Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dr.Reddy’s Laboratories||$2.20 billion||2.63||$151.00 million||$1.01||34.58|
|Eidos Therapeutics||N/A||N/A||-$11.94 million||N/A||N/A|
Dr.Reddy’s Laboratories has higher revenue and earnings than Eidos Therapeutics.
Dr.Reddy’s Laboratories pays an annual dividend of $0.27 per share and has a dividend yield of 0.8%. Eidos Therapeutics does not pay a dividend. Dr.Reddy’s Laboratories pays out 26.7% of its earnings in the form of a dividend.
Dr.Reddy’s Laboratories beats Eidos Therapeutics on 7 of the 12 factors compared between the two stocks.
Dr.Reddy’s Laboratories Company Profile
Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company worldwide. It operates through three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosage with therapeutic equivalence to branded formulations. This segment also engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. It also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. The Proprietary Products segment focuses on the research, development, and manufacture of differentiated formulations for dermatology and neurology therapeutic areas. It also provides a portfolio of in-licensed dermatology products. As of March 31, 2018, this segment had 13 active products development programs pipeline that are in various stages of development. The company's therapeutic categories primarily include gastro-intestinal, cardiovascular, anti-diabetic, pain management, oncology, dermatology, urology, and nephrology. It has collaboration, license, and option agreement with Curis, Inc. to discover, develop, and commercialize small molecule antagonists for immuno-oncology and precision oncology; and collaboration agreement with Merck Serono to co-develop a portfolio of biosimilar compounds in oncology, primarily focused on monoclonal antibodies. Dr. Reddy's Laboratories Limited was founded in 1984 and is headquartered in Hyderabad, India.
Eidos Therapeutics Company Profile
Eidos Therapeutics, Inc., a clinical stage biopharmaceutical company, focuses on developing drugs to treat diseases caused by transthyretin (TTR) amyloidosis (ATTR). It is developing AG10, an orally-administered small molecule designed to stabilize tetrameric TTR, thereby halting at its outset the series of molecular events that give rise to ATTR. The company was incorporated in 2013 and is headquartered in San Francisco, California. Eidos Therapeutics, Inc. is a subsidiary of BridgeBio Pharma LLC.
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