ARS Pharmaceuticals (NASDAQ:SPRY – Get Free Report) and Dr. Reddy’s Laboratories (NYSE:RDY – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Risk & Volatility
ARS Pharmaceuticals has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Dr. Reddy’s Laboratories has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.
Profitability
This table compares ARS Pharmaceuticals and Dr. Reddy’s Laboratories’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ARS Pharmaceuticals | -184.24% | -256.67% | -69.63% |
| Dr. Reddy’s Laboratories | 8.56% | 7.89% | 5.25% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ARS Pharmaceuticals | $84.28 million | 4.63 | -$171.30 million | ($2.18) | -1.80 |
| Dr. Reddy’s Laboratories | $3.58 billion | 3.20 | $456.00 million | $0.37 | 37.15 |
Dr. Reddy’s Laboratories has higher revenue and earnings than ARS Pharmaceuticals. ARS Pharmaceuticals 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.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for ARS Pharmaceuticals and Dr. Reddy’s Laboratories, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ARS Pharmaceuticals | 1 | 1 | 4 | 0 | 2.50 |
| Dr. Reddy’s Laboratories | 1 | 3 | 2 | 0 | 2.17 |
ARS Pharmaceuticals currently has a consensus target price of $25.00, indicating a potential upside of 537.76%. Dr. Reddy’s Laboratories has a consensus target price of $492.90, indicating a potential upside of 3,486.03%. Given Dr. Reddy’s Laboratories’ higher possible upside, analysts plainly believe Dr. Reddy’s Laboratories is more favorable than ARS Pharmaceuticals.
Insider and Institutional Ownership
68.2% of ARS Pharmaceuticals shares are owned by institutional investors. Comparatively, 3.8% of Dr. Reddy’s Laboratories shares are owned by institutional investors. 33.8% of ARS Pharmaceuticals shares are owned by insiders. Comparatively, 2.0% of Dr. Reddy’s Laboratories shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Dr. Reddy’s Laboratories beats ARS Pharmaceuticals on 8 of the 14 factors compared between the two stocks.
About ARS Pharmaceuticals
ARS Pharmaceuticals, Inc., a biopharmaceutical company, develops treatments for severe allergic reactions. The company is developing neffy, a needle-free and low-dose intranasal epinephrine nasal spray for the emergency treatment of Type I allergic reactions, including anaphylaxis. It serves healthcare professionals, patients, and caregivers. ARS Pharmaceuticals, Inc. was founded in 2015 and is headquartered in San Diego, 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.
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