Dr. Reddy’s Laboratories (NYSE:RDY) & ARS Pharmaceuticals (NASDAQ:SPRY) Head-To-Head Survey

ARS Pharmaceuticals (NASDAQ:SPRY) and Dr. Reddy’s Laboratories (NYSE:RDY) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

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	10.15%	9.49%	6.32%

Institutional and Insider 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.

Risk & Volatility

ARS Pharmaceuticals has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Dr. Reddy’s Laboratories has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ARS Pharmaceuticals and Dr. Reddy’s Laboratories, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARS Pharmaceuticals	1	1	4	0	2.50
Dr. Reddy’s Laboratories	1	1	2	0	2.25

ARS Pharmaceuticals currently has a consensus target price of $25.00, indicating a potential upside of 520.35%. Dr. Reddy’s Laboratories has a consensus target price of $732.40, indicating a potential upside of 5,446.80%. Given Dr. Reddy’s Laboratories’ higher probable upside, analysts plainly believe Dr. Reddy’s Laboratories is more favorable than ARS Pharmaceuticals.

Valuation and Earnings

This table compares ARS Pharmaceuticals 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
ARS Pharmaceuticals	$116.93 million	3.43	-$171.30 million	($2.18)	-1.85
Dr. Reddy’s Laboratories	$331.19 billion	0.03	$456.00 million	$0.37	35.69

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.

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.