Capstone (OTCMKTS:CAPS) vs. Dr. Reddy’s Laboratories (NYSE:RDY) Critical Comparison

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

Analyst Ratings

This is a breakdown of current recommendations for Capstone and Dr. Reddy’s Laboratories, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capstone	0	0	0	0	N/A
Dr. Reddy’s Laboratories	1	1	1	0	2.00

Dr. Reddy’s Laboratories has a consensus target price of $81.00, indicating a potential upside of 12.97%. Given Dr. Reddy’s Laboratories’ higher probable upside, analysts plainly believe Dr. Reddy’s Laboratories is more favorable than Capstone.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capstone	N/A	N/A	N/A	N/A	N/A
Dr. Reddy’s Laboratories	$3.35 billion	3.57	$668.00 million	$4.03	17.79

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

Volatility & Risk

Capstone has a beta of 115.52, suggesting that its share price is 11,452% more volatile than the S&P 500. Comparatively, Dr. Reddy’s Laboratories has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capstone	N/A	N/A	N/A
Dr. Reddy’s Laboratories	19.97%	21.32%	15.47%

Insider and Institutional Ownership

2.6% of Capstone shares are held by institutional investors. Comparatively, 14.0% of Dr. Reddy’s Laboratories shares are held by institutional investors. 42.8% of Capstone shares are held by insiders. Comparatively, 2.0% of Dr. Reddy’s Laboratories shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Dr. Reddy’s Laboratories beats Capstone on 7 of the 9 factors compared between the two stocks.

About Capstone

Capstone Holding Corp., through its subsidiaries, engages in the distribution of masonry stone products in the United States. Its masonry stone products include manufactured and natural stone cladding products, natural stone landscape products and related goods for residential and commercial construction. The company was formerly known as Capstone Therapeutics Corp. and changed its name to Capstone Holding Corp. in February 2022. Capstone Holding Corp. was incorporated in 1987 and is headquartered in Tempe, Arizona. Capstone Holding Corp. operates as a subsidiary of BP Peptides, LLC.

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. 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. 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 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.