WallStSmart

Charles River Laboratories (CRL)vsEli Lilly and Company (LLY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 2062% more annual revenue ($86.46B vs $4.00B). LLY leads profitability with a 31.9% profit margin vs -6.0%. CRL appears more attractively valued with a PEG of 0.12. LLY earns a higher WallStSmart Score of 74/100 (B).

CRL

Hold

38

out of 100

Grade: F

Growth: 2.7Profit: 4.5Value: 6.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.38

LLY

Strong Buy

74

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRLFair Value (-1.4%)

Margin of Safety

-1.4%

Fair Value

$163.67

Current Price

$337.52

$173.85 premium

UndervaluedFair: $163.67Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRL1 strengths · Avg: 10.0/10
PEG RatioValuation
0.1210/10

Growing faster than its price suggests

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$1.26T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
68.5%10/10

Every $100 of equity generates 68 in profit

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
53.7%10/10

Strong operational efficiency at 53.7%

Revenue GrowthGrowth
38.6%10/10

Revenue surging 38.6% year-over-year

Free Cash FlowQuality
$8.22B8/10

Generating 8.2B in free cash flow

Areas to Watch

CRL4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.073/10

Elevated debt levels

Return on EquityProfitability
-8.4%2/10

ROE of -8.4% — below average capital efficiency

Revenue GrowthGrowth
-2.7%2/10

Revenue declined 2.7%

EPS GrowthGrowth
-17.3%2/10

Earnings declined 17.3%

LLY3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.233/10

Elevated debt levels

P/E RatioValuation
46.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
30.0x2/10

Trading at 30.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CRL

The strongest argument for CRL centers on PEG Ratio. PEG of 0.12 suggests the stock is reasonably priced for its growth.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.9% and operating margin at 53.7%. Revenue growth of 38.6% demonstrates continued momentum.

Bear Case : CRL

The primary concerns for CRL are Debt/Equity, Return on Equity, Revenue Growth.

Bear Case : LLY

The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 46.0x leaves little room for execution misses.

Key Dynamics to Monitor

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

CRL carries more volatility with a beta of 1.40 — expect wider price swings.

LLY is growing revenue faster at 38.6% — sustainability is the question.

LLY generates stronger free cash flow (8.2B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (74/100 vs 38/100), backed by strong 31.9% margins and 38.6% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Charles River Laboratories

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Charles River Laboratories International, Inc., is an American pharmaceutical company specializing in a variety of preclinical and clinical laboratory, gene therapy and cell therapy services for the Pharmaceutical, Medical device and Biotechnology industries. It also supplies assorted biomedical products and outsourcing services for research and development in the pharmaceutical industry and offer support in the fields of basic research, drug discovery, safety and efficacy, clinical support, and manufacturing.

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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