Analyzing Dr. Reddy’s Laboratories (NYSE:RDY) & Aspen Pharmacare (OTCMKTS:APNHY)

Dr. Reddy’s Laboratories (NYSE:RDY) and Aspen Pharmacare (OTCMKTS:APNHY) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Dr. Reddy’s Laboratories and Aspen Pharmacare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dr. Reddy’s Laboratories	0	1	2	1	3.00
Aspen Pharmacare	0	0	0	0	0.00

Dr. Reddy’s Laboratories currently has a consensus price target of $16.95, indicating a potential upside of 22.69%. Given Dr. Reddy’s Laboratories’ stronger consensus rating and higher probable upside, research analysts clearly believe Dr. Reddy’s Laboratories is more favorable than Aspen Pharmacare.

Institutional and Insider Ownership

3.9% of Dr. Reddy’s Laboratories shares are held by institutional investors. 2.0% of Dr. Reddy’s Laboratories shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Dr. Reddy’s Laboratories and Aspen Pharmacare”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dr. Reddy’s Laboratories	$3.81 billion	3.03	$663.00 million	$0.66	20.93
Aspen Pharmacare	$2.39 billion	N/A	$235.61 million	N/A	N/A

Dr. Reddy’s Laboratories has higher revenue and earnings than Aspen Pharmacare.

Dividends

Dr. Reddy’s Laboratories pays an annual dividend of $0.07 per share and has a dividend yield of 0.5%. Aspen Pharmacare pays an annual dividend of $0.12 per share and has a dividend yield of 1.9%. Dr. Reddy’s Laboratories pays out 10.6% of its earnings in the form of a dividend.

Volatility and Risk

Dr. Reddy’s Laboratories has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Aspen Pharmacare has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Dr. Reddy’s Laboratories and Aspen Pharmacare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dr. Reddy’s Laboratories	16.99%	17.25%	11.63%
Aspen Pharmacare	N/A	N/A	N/A

Summary

Dr. Reddy’s Laboratories beats Aspen Pharmacare on 11 of the 14 factors compared between the two stocks.

About Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segments. The company’s 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 dosages with therapeutic equivalence to branded formulations, as well as engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. The Others segment engages in developing therapies in the fields of oncology and inflammation; research and development of differentiated formulations; and provides digital healthcare and information technology enabled business support services. The company offers its products for various therapeutic categories primarily include gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology. Dr. Reddy’s Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.

About Aspen Pharmacare

Aspen Pharmacare Holdings Limited, together with its subsidiaries, manufactures and supplies specialty and branded pharmaceutical products worldwide. It operates in Commercial Pharmaceuticals and Manufacturing segments. The company provides general anesthetics, muscle relaxants, and topical agents under the Anaesthetics brand; and a range of injectable anticoagulants with a focus on low molecular weight heparins, Xa inhibitors, and heparin derivatives under the Thrombosis brand. It also offers branded consumer, prescription, and over-the-counter products under the regional brands, such as Circadin, Foxair, Maltofer, Mybulen, and Zyloric for various types of anesthetic comprises sleeping aid, respiratory, iron supplement, analgesic, and uric acid production inhibitor. In addition, the company manufactures and sells active pharmaceutical ingredients and finished dose form products to third-party customers. Aspen Pharmacare Holdings Limited was founded in 1850 and is headquartered in Durban, South Africa.