Analyzing Innovus Pharmaceuticals (OTCMKTS:INNVD) and Dr.Reddy’s Laboratories (OTCMKTS:RDY)

Innovus Pharmaceuticals (OTCMKTS:INNVD) and Dr.Reddy’s Laboratories (NYSE:RDY) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Innovus Pharmaceuticals -34.51% -682.54% -78.57%
Dr.Reddy’s Laboratories 11.15% 19.66% 12.99%

Valuation and Earnings

This table compares Innovus Pharmaceuticals and Dr.Reddy’s Laboratories’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Innovus Pharmaceuticals $23.99 million 0.12 -$8.28 million ($4.16) -0.30
Dr.Reddy’s Laboratories $2.32 billion 3.62 $272.00 million $2.79 18.13

Dr.Reddy’s Laboratories has higher revenue and earnings than Innovus Pharmaceuticals. Innovus 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.

Institutional & Insider Ownership

10.4% of Innovus Pharmaceuticals shares are owned by institutional investors. Comparatively, 13.1% of Dr.Reddy’s Laboratories shares are owned by institutional investors. 16.4% of Innovus Pharmaceuticals shares are owned by company insiders. Comparatively, 2.0% of Dr.Reddy’s Laboratories shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Innovus Pharmaceuticals has a beta of 2.89, suggesting that its stock price is 189% more volatile than the S&P 500. Comparatively, Dr.Reddy’s Laboratories has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Innovus Pharmaceuticals and Dr.Reddy’s Laboratories, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innovus Pharmaceuticals 0 0 0 0 N/A
Dr.Reddy’s Laboratories 0 3 4 0 2.57

Dr.Reddy’s Laboratories has a consensus target price of $39.00, indicating a potential downside of 22.88%. Given Dr.Reddy’s Laboratories’ higher possible upside, analysts plainly believe Dr.Reddy’s Laboratories is more favorable than Innovus Pharmaceuticals.

Summary

Dr.Reddy’s Laboratories beats Innovus Pharmaceuticals on 11 of the 13 factors compared between the two stocks.

Innovus Pharmaceuticals Company Profile

Innovus Pharmaceuticals, Inc., a pharmaceutical company, engages in the development, licensing, and commercialization of non-prescription medicines and consumer care products in the United States. Its products include Zestra, a proprietary blend of essential oils to enhance desire, arousal, and satisfaction in women; EjectDelay, an over-the-counter monograph compliant benzocaine gel for premature ejaculation; Sensum+, a non-medicated cream for penile sensitivity; Zestra Glide, a water-based longer lasting lubricant; Vesele, a proprietary oral supplement for promoting sexual health; and Androferti, a natural supplement to support male reproductive health and sperm quality. The company also offers Beyond Human testosterone booster, ketones, krill oil, omega 3 fish oil, Vision Formula, blood sugar, colon cleanse, green coffee extract, and growth agent; RecalMax for brain health; UriVarx, a supplement for overactive bladder and urinary incontinence; PEVarx, a supplement for peak sexual performance; ProstaGorx, a supplement for prostate support; and FlutiCare, a nasal spray. In addition, its products include Apeaz for pain relief; AllerVarx for allergy relief; ArthriVarx for joint pain; Xyralid, a hemorrhoid cream; Can-C eye drop and eye care capsule; MZS, a melatonin formula to enhance sleep patterns; and Diabasens, a diabetic foot cream. The company's pipeline products comprise UriVarx for urinary tract infection; Xyralid suppositories for hemorrhoidal symptoms; GlucoGorx supplement, glucometer, lancing device, and GlucoGorx strip for blood sugar levels; Vesele and RecalMax nitric oxide strips. It markets and sells its products through commercial partners to primary care physicians, urologists, gynecologists, and therapists, as well as to other healthcare providers; and directly to consumers through online channels, retailers, and wholesalers. Innovus Pharmaceuticals, Inc. was founded in 2008 and is headquartered in San Diego, California.

Dr.Reddy’s Laboratories Company Profile

Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company worldwide. It operates through three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The 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 dosage with therapeutic equivalence to branded formulations. This segment also engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. It also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. The Proprietary Products segment focuses on the research, development, and manufacture of differentiated formulations for dermatology and neurology therapeutic areas. It also provides a portfolio of in-licensed dermatology products. As of March 31, 2018, this segment had 13 active products development programs pipeline that are in various stages of development. The company's therapeutic categories primarily include gastro-intestinal, cardiovascular, anti-diabetic, pain management, oncology, dermatology, urology, and nephrology. It has collaboration, license, and option agreement with Curis, Inc. to discover, develop, and commercialize small molecule antagonists for immuno-oncology and precision oncology; and collaboration agreement with Merck Serono to co-develop a portfolio of biosimilar compounds in oncology, primarily focused on monoclonal antibodies. Dr. Reddy's Laboratories Limited was founded in 1984 and is headquartered in Hyderabad, India.

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