NewAmsterdam Pharma (NASDAQ:NAMS) & Dr. Reddy’s Laboratories (NYSE:RDY) Critical Contrast

NewAmsterdam Pharma (NASDAQ:NAMS) and Dr. Reddy’s Laboratories (NYSE:RDY) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

89.9% of NewAmsterdam Pharma shares are owned by institutional investors. Comparatively, 3.8% of Dr. Reddy’s Laboratories shares are owned by institutional investors. 20.8% of NewAmsterdam Pharma 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, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares NewAmsterdam Pharma and Dr. Reddy’s Laboratories”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewAmsterdam Pharma	$47.14 million	48.41	-$176.94 million	($1.88)	-10.81
Dr. Reddy’s Laboratories	$325.54 billion	0.04	$668.00 million	$0.66	23.69

Dr. Reddy’s Laboratories has higher revenue and earnings than NewAmsterdam Pharma. NewAmsterdam Pharma 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 price targets for NewAmsterdam Pharma and Dr. Reddy’s Laboratories, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewAmsterdam Pharma	0	0	6	0	3.00
Dr. Reddy’s Laboratories	0	1	2	1	3.00

NewAmsterdam Pharma presently has a consensus price target of $42.86, suggesting a potential upside of 110.85%. Dr. Reddy’s Laboratories has a consensus price target of $16.95, suggesting a potential upside of 8.41%. Given NewAmsterdam Pharma’s higher possible upside, research analysts clearly believe NewAmsterdam Pharma is more favorable than Dr. Reddy’s Laboratories.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NewAmsterdam Pharma	N/A	N/A	N/A
Dr. Reddy’s Laboratories	17.25%	17.87%	12.32%

Risk & Volatility

NewAmsterdam Pharma has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Dr. Reddy’s Laboratories has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Summary

Dr. Reddy’s Laboratories beats NewAmsterdam Pharma on 9 of the 14 factors compared between the two stocks.

About NewAmsterdam Pharma

NewAmsterdam Pharma Company N.V., a late-stage biopharmaceutical company, develops therapies to enhance patient care in populations with metabolic disease. It is developing obicetrapib, an oral low-dose cholesteryl ester transfer protein (CETP) inhibitor, that is in various clinical trials as a monotherapy and a combination therapy with ezetimibe for lowering LDL-C for cardiovascular diseases. The company also develops Obicetrapib which is in Phase 2a clinical trial for Alzheimer’s disease. NewAmsterdam Pharma Company N.V. is headquartered in Naarden, the Netherlands.

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.