Dr. Reddy’s Laboratories (NYSE:RDY) & Shineco (NASDAQ:SISI) Financial Review

Dr. Reddy’s Laboratories (NYSE:RDY) and Shineco (NASDAQ:SISI) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Volatility & Risk

Dr. Reddy’s Laboratories has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Shineco has a beta of -1.76, meaning that its share price is 276% less volatile than the S&P 500.

Profitability

This table compares Dr. Reddy’s Laboratories and Shineco’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%
Shineco	-380.55%	-79.89%	-33.01%

Insider and Institutional Ownership

3.8% of Dr. Reddy’s Laboratories shares are owned by institutional investors. Comparatively, 4.1% of Shineco shares are owned by institutional investors. 2.0% of Dr. Reddy’s Laboratories shares are owned by insiders. Comparatively, 0.0% of Shineco shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Dr. Reddy’s Laboratories and Shineco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dr. Reddy’s Laboratories	$331.19 billion	0.03	$456.00 million	$0.44	27.06
Shineco	$9.60 million	0.00	-$22.45 million	($204.00)	-0.00

Dr. Reddy’s Laboratories has higher revenue and earnings than Shineco. Shineco 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 Recommendations

This is a summary of recent recommendations and price targets for Dr. Reddy’s Laboratories and Shineco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dr. Reddy’s Laboratories	1	1	0	0	1.50
Shineco	1	0	0	0	1.00

Summary

Dr. Reddy’s Laboratories beats Shineco on 11 of the 12 factors compared between the two stocks.

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.

About Shineco

Shineco, Inc., through its subsidiaries, processes and distributes agricultural produce. It also engages in the growing and cultivation of mulberry trees and silkworm cocoons; distribution of fruit business; and processing and distribution of silk and silk fabrics, as well as other by-products. The company was incorporated in 1997 and is headquartered in Beijing, the People's Republic of China.