WallStSmart

Gilead Sciences Inc (GILD)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 121% more annual revenue ($65.18B vs $29.44B). LLY leads profitability with a 31.7% profit margin vs 28.9%. GILD appears more attractively valued with a PEG of 0.38. LLY earns a higher WallStSmart Score of 80/100 (A-).

GILD

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 9.5Value: 10.0Quality: 5.5
Piotroski: 6/9

LLY

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 9.3Quality: 8.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GILDUndervalued (+54.3%)

Margin of Safety

+54.3%

Fair Value

$299.95

Current Price

$137.21

$162.74 discount

UndervaluedFair: $299.95Overvalued
LLYUndervalued (+15.6%)

Margin of Safety

+15.6%

Fair Value

$1073.59

Current Price

$906.70

$166.89 discount

UndervaluedFair: $1073.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GILD6 strengths · Avg: 9.3/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
37.4%10/10

Strong operational efficiency at 37.4%

Market CapQuality
$170.34B9/10

Large-cap with strong market position

Profit MarginProfitability
28.9%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
23.4%8/10

Earnings expanding 23.4% YoY

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$811.51B10/10

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

GILD1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
39.5x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.603/10

Elevated debt levels

Price/BookValuation
30.6x2/10

Trading at 30.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : GILD

The strongest argument for GILD centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 28.9% and operating margin at 37.4%. PEG of 0.38 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 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.

Bear Case : GILD

The primary concerns for GILD are Revenue Growth.

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

GILD profiles as a value stock while LLY is a growth play — different risk/reward profiles.

LLY carries more volatility with a beta of 0.43 — expect wider price swings.

LLY is growing revenue faster at 42.6% — sustainability is the question.

GILD generates stronger free cash flow (3.1B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (80/100 vs 72/100), backed by strong 31.7% margins and 42.6% revenue growth. GILD offers better value entry with a 54.3% margin of safety. Both earn "Exceptional 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.

Gilead Sciences Inc

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.

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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