Which Is a Better Investment, Dr Reddy's Laboratories Ltd (ADR) or Teva Pharmaceutical Industries Ltd (ADR) Stock?

By AAII Staff
August 02, 2026
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Sifting through countless of stocks in the Pharmaceuticals industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Teva Pharmaceutical Industries Limited or Dr. Reddy's Laboratories Limited because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Teva Pharmaceutical Industries Limited and Dr. Reddy's Laboratories Limited compare based on key financial metrics to determine which better meets your investment needs.

About Teva Pharmaceutical Industries Limited and Dr. Reddy's Laboratories Limited

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic and other medicines, and biopharmaceutical products in the United States, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company also focuses on the central nervous system (CNS), respiratory, oncology, and other areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin’s lymphoma; COPAXONE, glatiramer acetate injection to treat patients with relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of tardive dyskinesia, chorea associated with Huntington’s disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; QVAR RediHaler to treat asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax budesonide and formoterol powder inhaler; AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder; and ProAir RespiClick inhalation powder. It offers its OTC products under the SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. The company has collaboration agreements with MedinCell S.A.; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. Teva Pharmaceutical Industries Limited was founded in 1901 and is based in Tel Aviv-Yafo, Israel.

Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company North America, Europe, India, Russia, and internationally. The company operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segment. Its 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 with the customer requirements. Its Others segment engages in developing therapies in the fields of oncology and inflammation; and research, development, and commercialization of differentiated formulations. The company offers its products for various therapeutic categories, including gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology, vaccines, vitamins and minerals, and pain management. Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.

Latest Pharmaceuticals and Teva Pharmaceutical Industries Limited, Dr. Reddy's Laboratories Limited Stock News

As of July 31, 2026, Teva Pharmaceutical Industries Limited had a $40.8 billion market capitalization, compared to the Pharmaceuticals median of $579.1 million. Teva Pharmaceutical Industries Limited’s stock is up 12.2% in 2026, up 13.6% in the previous five trading days and up 108.02% in the past year.

Currently, Teva Pharmaceutical Industries Limited’s price-earnings ratio is 58.2. Teva Pharmaceutical Industries Limited’s trailing 12-month revenue is $17.3 billion with a 4.1% net profit margin. Year-over-year quarterly sales growth most recently was -0.8%. Analysts expect adjusted earnings to reach $2.143 per share for the current fiscal year. Teva Pharmaceutical Industries Limited does not currently pay a dividend.

As of July 31, 2026, Dr. Reddy's Laboratories Limited had a $10.0 billion market cap, putting it in the 77th percentile of all stocks. Dr. Reddy's Laboratories Limited’s stock is down 15.6% in 2026, up 0.5% in the previous five trading days and down 15.96% in the past year.

Currently, Dr. Reddy's Laboratories Limited’s price-earnings ratio is 28.2. Dr. Reddy's Laboratories Limited’s trailing 12-month revenue is $3.5 billion with a 10.0% net profit margin. Year-over-year quarterly sales growth most recently was -14.3%. There are no analysts providing consensus earnings estimates for the current fiscal year. Dr. Reddy's Laboratories Limited currently has a 0.7% dividend yield.

How We Compare Teva Pharmaceutical Industries Limited and Dr. Reddy's Laboratories Limited Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Teva Pharmaceutical Industries Limited and Dr. Reddy's Laboratories Limited’s stock grades to see how they measure up against one another.

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Teva Pharmaceutical Industries Limited and Dr. Reddy's Laboratories Limited Stock Value Grades

Company Ticker Value
Teva Pharmaceutical Industries Limited TEVA D
Dr. Reddy's Laboratories Limited RDY B

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Teva Pharmaceutical Industries Limited has a Value Score of 25, which is Expensive. Dr. Reddy's Laboratories Limited has a Value Score of 77, which is Value.

The Value Stock Winner: Dr. Reddy's Laboratories Limited

As you can clearly see from the Value Grade breakdown above, Dr. Reddy's Laboratories Limited is considered to have better value than Teva Pharmaceutical Industries Limited. For investors who focus solely on a company’s valuation, Dr. Reddy's Laboratories Limited could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Teva Pharmaceutical Industries Limited and Dr. Reddy's Laboratories Limited Growth Grades

Company Ticker Growth
Teva Pharmaceutical Industries Limited TEVA D
Dr. Reddy's Laboratories Limited RDY A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Teva Pharmaceutical Industries Limited has a Growth Score of 36, which is Weak. Dr. Reddy's Laboratories Limited has a Growth Score of 95, which is Very Strong.

The Growth Grade Winner: Dr. Reddy's Laboratories Limited

As you can clearly see from the Growth Grade breakdown above, Dr. Reddy's Laboratories Limited has a more attractive growth grade than Teva Pharmaceutical Industries Limited. For investors who focus solely on how a company is growing relative to other companies in the same industry, Dr. Reddy's Laboratories Limited could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Teva Pharmaceutical Industries Limited and Dr. Reddy's Laboratories Limited’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Teva Pharmaceutical Industries Limited TEVA D
Dr. Reddy's Laboratories Limited RDY na

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Teva Pharmaceutical Industries Limited has a Earnings Estimate Score of 30, which is Negative. Dr. Reddy's Laboratories Limited does not have a meaningful Earnings Estimate Score.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither Teva Pharmaceutical Industries Limited or Dr. Reddy's Laboratories Limited has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Teva Pharmaceutical Industries Limited or Dr. Reddy's Laboratories Limited is the better investment when it comes to estimate revisions.

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Other Teva Pharmaceutical Industries Limited and Dr. Reddy's Laboratories Limited Grades

In addition to Value, Estimate Revisions and Growth, A+ Investor also provides grades for Momentum and Quality.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Teva Pharmaceutical Industries Limited and Dr. Reddy's Laboratories Limited pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Teva Pharmaceutical Industries Limited or Dr. Reddy's Laboratories Limited Stock?

Overall, Teva Pharmaceutical Industries Limited stock has a Value Score of 25, Growth Score of 36 and Estimate Revisions Score of 30.

Dr. Reddy's Laboratories Limited stock has a Value Score of 77, Growth Score of 95 and Estimate Revisions Score of .

Comparing Teva Pharmaceutical Industries Limited and Dr. Reddy's Laboratories Limited’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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