BridgeBio Pharma (NASDAQ:BBIO) & Dr. Reddy’s Laboratories (NYSE:RDY) Financial Comparison

BridgeBio Pharma (NASDAQ:BBIO) and Dr. Reddy’s Laboratories (NYSE:RDY) are both large-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BridgeBio Pharma	$221.90 million	46.71	-$535.76 million	($4.09)	-13.26
Dr. Reddy’s Laboratories	$3.81 billion	3.08	$663.00 million	$0.66	21.28

Dr. Reddy’s Laboratories has higher revenue and earnings than BridgeBio Pharma. BridgeBio Pharma is trading at a lower price-to-earnings ratio than Dr. Reddy’s Laboratories, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BridgeBio Pharma	-329.25%	N/A	-85.69%
Dr. Reddy’s Laboratories	16.99%	17.25%	11.63%

Institutional & Insider Ownership

99.9% of BridgeBio Pharma shares are held by institutional investors. Comparatively, 3.9% of Dr. Reddy’s Laboratories shares are held by institutional investors. 18.2% of BridgeBio Pharma shares are held by insiders. Comparatively, 2.0% of Dr. Reddy’s Laboratories shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

BridgeBio Pharma has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Dr. Reddy’s Laboratories has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for BridgeBio Pharma and Dr. Reddy’s Laboratories, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BridgeBio Pharma	1	0	17	0	2.89
Dr. Reddy’s Laboratories	0	2	3	1	2.83

BridgeBio Pharma currently has a consensus target price of $63.94, suggesting a potential upside of 17.93%. Dr. Reddy’s Laboratories has a consensus target price of $16.95, suggesting a potential upside of 20.68%. Given Dr. Reddy’s Laboratories’ higher possible upside, analysts clearly believe Dr. Reddy’s Laboratories is more favorable than BridgeBio Pharma.

Summary

Dr. Reddy’s Laboratories beats BridgeBio Pharma on 9 of the 15 factors compared between the two stocks.

About BridgeBio Pharma

BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers. Its products in development programs include AG10, a next-generation oral small molecule near-complete TTR stabilizer that is in Phase 3 clinical trial for the treatment of TTR amyloidosis, or transthyretin amyloid cardiomyopathy (ATTR-CM); low-dose infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor, which is in Phase 3 double-blinded, placebo-controlled pivotal study for the treatment option for children with achondroplasia; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 1/2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 3 clinical trial for treating autosomal dominant hypocalcemia type 1, or ADH1; and BBP-418, a glycosylation substrate pro-drug that is in Phase 3 clinical trial for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9). In addition, it engages in developing products for mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and Leidos Biomedical Research, Inc. The company was founded in 2015 and is headquartered in Palo Alto, California.

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.