WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 5874% more annual revenue ($65.18B vs $1.09B). LLY leads profitability with a 31.7% profit margin vs 18.5%. LLY trades at a lower P/E of 37.0x. LLY earns a higher WallStSmart Score of 78/100 (B+).

ARWR

Buy

56

out of 100

Grade: C

Growth: 8.7Profit: 8.5Value: 4.7Quality: 5.8
Piotroski: 5/9Altman Z: 0.27

LLY

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.0Quality: 6.5
Piotroski: 6/9Altman Z: 2.06

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARWR2 strengths · Avg: 10.0/10
Return on EquityProfitability
75.5%10/10

Every $100 of equity generates 76 in profit

Revenue GrowthGrowth
10461.0%10/10

Revenue surging 10461.0% year-over-year

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$760.43B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
101.2%10/10

Every $100 of equity generates 101 in profit

Profit MarginProfitability
31.7%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
44.9%10/10

Strong operational efficiency at 44.9%

Revenue GrowthGrowth
42.6%10/10

Revenue surging 42.6% year-over-year

EPS GrowthGrowth
51.4%10/10

Earnings expanding 51.4% YoY

Areas to Watch

ARWR3 concerns · Avg: 2.7/10
Price/BookValuation
17.0x4/10

Trading at 17.0x book value

P/E RatioValuation
44.1x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.272/10

Distress zone — elevated risk

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.0x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.603/10

Elevated debt levels

Price/BookValuation
28.7x2/10

Trading at 28.7x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ARWR

The strongest argument for ARWR centers on Return on Equity, Revenue Growth. Profitability is solid with margins at 18.5% and operating margin at 15.5%. Revenue growth of 10461.0% demonstrates continued momentum.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.

Bear Case : ARWR

The primary concerns for ARWR are Price/Book, P/E Ratio, Altman Z-Score. A P/E of 44.1x leaves little room for execution misses.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

ARWR is growing revenue faster at 10461.0% — sustainability is the question.

LLY generates stronger free cash flow (678M), providing more financial flexibility.

Monitor BIOTECHNOLOGY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LLY scores higher overall (78/100 vs 56/100), backed by strong 31.7% margins and 42.6% revenue growth. Both earn "Strong Buy" and "Buy" 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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