Financial Analysis: Vireo Growth (OTCMKTS:VREOD) versus Dr. Reddy’s Laboratories (NYSE:RDY)

Dr. Reddy’s Laboratories (NYSE:RDY – Get Free Report) and Vireo Growth (OTCMKTS:VREOD – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Volatility & Risk

Dr. Reddy’s Laboratories has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Vireo Growth has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Dr. Reddy’s Laboratories and Vireo Growth, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dr. Reddy’s Laboratories 1 1 1 0 2.00
Vireo Growth 1 0 0 0 1.00

Dr. Reddy’s Laboratories presently has a consensus price target of $1,450.00, suggesting a potential upside of 11,188.44%. Given Dr. Reddy’s Laboratories’ stronger consensus rating and higher possible upside, research analysts plainly believe Dr. Reddy’s Laboratories is more favorable than Vireo Growth.

Insider and Institutional Ownership

3.8% of Dr. Reddy’s Laboratories shares are owned by institutional investors. 2.0% of Dr. Reddy’s Laboratories shares are owned by company insiders. Comparatively, 3.8% of Vireo Growth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Dr. Reddy’s Laboratories and Vireo Growth”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dr. Reddy’s Laboratories $3.58 billion 2.99 $456.00 million $0.44 29.19
Vireo Growth $268.77 million 1.68 -$68.11 million ($3.30) -3.02

Dr. Reddy’s Laboratories has higher revenue and earnings than Vireo Growth. Vireo Growth 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 Dr. Reddy’s Laboratories and Vireo Growth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dr. Reddy’s Laboratories 10.15% 9.49% 6.32%
Vireo Growth -23.37% -19.76% -7.15%

Summary

Dr. Reddy’s Laboratories beats Vireo Growth on 12 of the 14 factors compared between the two stocks.

About Dr. Reddy’s Laboratories

(Get Free Report)

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 Vireo Growth

(Get Free Report)

Goodness Growth Holdings, Inc. operates as a cannabis company in the United States. The company cultivates, processes, and distributes medical and adult-use cannabis products. It sells cannabis products through its network of Green Goods and other Goodness Growth branded retail dispensaries and third-party dispensaries in Maryland, Minnesota, and New York. The company was formerly known as Vireo Health International Inc. and changed its name to Goodness Growth Holdings, Inc. in June 2021. Goodness Growth Holdings, Inc. is headquartered in Minneapolis, Minnesota.

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