WallStSmart

Bristol-Myers Squibb Company (BMY)vsEli Lilly and Company (LLY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 62% more annual revenue ($79.67B vs $49.19B). LLY leads profitability with a 33.5% profit margin vs 18.9%. LLY appears more attractively valued with a PEG of 1.11. LLY earns a higher WallStSmart Score of 76/100 (B+).

BMY

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 6.7Quality: 5.5
Piotroski: 6/9Altman Z: 1.44

LLY

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BMYUndervalued (+17.5%)

Margin of Safety

+17.5%

Fair Value

$72.68

Current Price

$63.64

$9.04 discount

UndervaluedFair: $72.68Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BMY6 strengths · Avg: 9.2/10
Return on EquityProfitability
41.6%10/10

Every $100 of equity generates 42 in profit

Operating MarginProfitability
34.4%10/10

Strong operational efficiency at 34.4%

EPS GrowthGrowth
153.1%10/10

Earnings expanding 153.1% YoY

Market CapQuality
$130.00B9/10

Large-cap with strong market position

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$3.09B8/10

Generating 3.1B in free cash flow

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$994.92B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
54.2%10/10

Strong operational efficiency at 54.2%

Revenue GrowthGrowth
47.7%10/10

Revenue surging 47.7% year-over-year

EPS GrowthGrowth
26.2%8/10

Earnings expanding 26.2% YoY

Areas to Watch

BMY3 concerns · Avg: 3.0/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Debt/EquityHealth
1.933/10

Elevated debt levels

Altman Z-ScoreHealth
1.442/10

Distress zone — elevated risk

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

Premium valuation, high expectations priced in

Debt/EquityHealth
1.623/10

Elevated debt levels

Price/BookValuation
29.4x2/10

Trading at 29.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : BMY

The strongest argument for BMY centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 18.9% and operating margin at 34.4%.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 33.5% and operating margin at 54.2%. Revenue growth of 47.7% demonstrates continued momentum.

Bear Case : BMY

The primary concerns for BMY are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.93 is elevated, increasing financial risk.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

BMY profiles as a mature stock while LLY is a growth play — different risk/reward profiles.

LLY carries more volatility with a beta of 0.50 — expect wider price swings.

LLY is growing revenue faster at 47.7% — sustainability is the question.

LLY generates stronger free cash flow (7.8B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (76/100 vs 70/100), backed by strong 33.5% margins and 47.7% revenue growth. BMY offers better value entry with a 17.5% margin of safety. Both earn "Strong Buy" and "Strong 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.

Bristol-Myers Squibb Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Bristol Myers Squibb (BMS) is an American multinational pharmaceutical company, headquartered in New York City. Bristol Myers Squibb manufactures prescription pharmaceuticals and biologics in several therapeutic areas, including cancer, AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis and psychiatric disorders.

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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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