Dr.Reddy's Laboratories (NYSE: RDY) and Amicus Therapeutics (NASDAQ:FOLD) are both mid-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Dividends

Dr.Reddy's Laboratories pays an annual dividend of $0.29 per share and has a dividend yield of 0.9%. Amicus Therapeutics does not pay a dividend. Dr.Reddy's Laboratories pays out 31.2% of its earnings in the form of a dividend.

Volatility & Risk

Dr.Reddy's Laboratories has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Amicus Therapeutics has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Dr.Reddy's Laboratories and Amicus Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dr.Reddy's Laboratories 1 1 2 0 2.25
Amicus Therapeutics 0 1 6 0 2.86

Dr.Reddy's Laboratories currently has a consensus target price of $30.51, indicating a potential downside of 10.32%. Amicus Therapeutics has a consensus target price of $19.50, indicating a potential upside of 31.67%. Given Amicus Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Amicus Therapeutics is more favorable than Dr.Reddy's Laboratories.

Profitability

This table compares Dr.Reddy's Laboratories and Amicus Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dr.Reddy's Laboratories 6.95% 8.79% 4.89%
Amicus Therapeutics -1,092.37% -63.54% -23.46%

Institutional and Insider Ownership

13.9% of Dr.Reddy's Laboratories shares are held by institutional investors. 2.0% of Dr.Reddy's Laboratories shares are held by insiders. Comparatively, 3.4% of Amicus Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Dr.Reddy's Laboratories and Amicus Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dr.Reddy's Laboratories $2.17 billion 2.60 $186.00 million $0.93 36.58
Amicus Therapeutics $4.96 million 496.46 -$200.04 million ($1.83) -8.09

Dr.Reddy's Laboratories has higher revenue and earnings than Amicus Therapeutics. Amicus Therapeutics 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.

Summary

Dr.Reddy's Laboratories beats Amicus Therapeutics on 9 of the 16 factors compared between the two stocks.

About Dr.Reddy's Laboratories

Dr. Reddy’s Laboratories Limited is a pharmaceutical company that is engaged in providing medicines. The Company operates in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The Global Generics segment includes manufacturing and marketing prescription and over-the-counter finished pharmaceutical products ready for consumption by the patient, marketed under a brand name (branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics). PSAI segment includes the Company’s business of manufacturing and marketing active pharmaceutical ingredients and intermediates (API) or bulk drugs. Proprietary Products segment focuses on the research, development and manufacture of differentiated formulations and new chemical entities. These products fall within the dermatology and neurology therapeutic areas, and are marketed and sold through its subsidiary, Promius Pharma, LLC.

About Amicus Therapeutics

Amicus Therapeutics, Inc. is a biotechnology company. The Company is engaged in the discovery, development and commercialization of a set of treatments for patients living with devastating rare and orphan diseases. Its lead product, migalastat HCl is a small molecule that can be used as a monotherapy and in combination with enzyme replacement therapy (ERT) for Fabry disease. Its pipeline also includes SD-101, which is a product candidate in late-stage development, as a potential first-to-market therapy for the chronic, rare connective tissue disorder Epidermolysis Bullosa (EB). It is also leveraging its Chaperone-Advanced Replacement Therapy (CHART) platform technologies to develop ERT products for Pompe disease, Fabry disease, and potentially other lysosomal storage disorders (LSDs). The Company is also investigating preclinical and discovery programs in other rare and devastating diseases, including cyclin-dependent kinase-like 5 (CDKL5) deficiency.

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