WallStSmart

Arrowhead Pharmaceuticals Inc (ARWR)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 11515% more annual revenue ($72.25B vs $622.01M). LLY leads profitability with a 35.0% profit margin vs -48.4%. LLY earns a higher WallStSmart Score of 78/100 (B+).

ARWR

Avoid

23

out of 100

Grade: F

Growth: 6.0Profit: 2.0Value: 5.0Quality: 5.0
Piotroski: 5/9Altman Z: 0.29

LLY

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.06

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARWR0 strengths · Avg: 0/10

No standout strengths identified

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$948.95B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
81.0%10/10

Every $100 of equity generates 81 in profit

Profit MarginProfitability
35.0%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
49.4%10/10

Strong operational efficiency at 49.4%

Revenue GrowthGrowth
55.5%10/10

Revenue surging 55.5% year-over-year

EPS GrowthGrowth
169.9%10/10

Earnings expanding 169.9% YoY

Areas to Watch

ARWR4 concerns · Avg: 2.5/10
Price/BookValuation
16.7x4/10

Trading at 16.7x book value

Return on EquityProfitability
-49.0%2/10

ROE of -49.0% — below average capital efficiency

Revenue GrowthGrowth
-86.4%2/10

Revenue declined 86.4%

Altman Z-ScoreHealth
0.292/10

Distress zone — elevated risk

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.393/10

Elevated debt levels

Price/BookValuation
32.4x2/10

Trading at 32.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ARWR

ARWR has a balanced fundamental profile.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 35.0% and operating margin at 49.4%. Revenue growth of 55.5% demonstrates continued momentum.

Bear Case : ARWR

The primary concerns for ARWR are Price/Book, Return on Equity, Revenue Growth. Debt-to-equity of 2.24 is elevated, increasing financial risk.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book.

Key Dynamics to Monitor

ARWR profiles as a turnaround stock while LLY is a growth play — different risk/reward profiles.

ARWR carries more volatility with a beta of 1.27 — expect wider price swings.

LLY is growing revenue faster at 55.5% — sustainability is the question.

LLY generates stronger free cash flow (3.0B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (78/100 vs 23/100), backed by strong 35.0% margins and 55.5% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arrowhead Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Arrowhead Pharmaceuticals, Inc. develops drugs for the treatment of intractable diseases in the United States. The company is headquartered in Pasadena, California.

Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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