WallStSmart

HealthEquity Inc (HQY)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 4863% more annual revenue ($65.18B vs $1.31B). LLY leads profitability with a 31.7% profit margin vs 16.4%. HQY appears more attractively valued with a PEG of 1.19. LLY earns a higher WallStSmart Score of 78/100 (B+).

HQY

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 7.0Value: 6.7Quality: 6.5
Piotroski: 4/9

LLY

Strong Buy

78

out of 100

Grade: B+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HQYUndervalued (+54.7%)

Margin of Safety

+54.7%

Fair Value

$169.68

Current Price

$81.48

$88.20 discount

UndervaluedFair: $169.68Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HQY2 strengths · Avg: 9.0/10
EPS GrowthGrowth
92.4%10/10

Earnings expanding 92.4% YoY

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$789.69B10/10

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

HQY1 concerns · Avg: 4.0/10
P/E RatioValuation
33.5x4/10

Premium valuation, high expectations priced in

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
38.5x4/10

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 : HQY

The strongest argument for HQY centers on EPS Growth, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 21.6%. PEG of 1.19 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 : HQY

The primary concerns for HQY are P/E Ratio.

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

HQY 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 42.6% — sustainability is the question.

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

Bottom Line

LLY scores higher overall (78/100 vs 66/100), backed by strong 31.7% margins and 42.6% revenue growth. HQY offers better value entry with a 54.7% 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.

HealthEquity Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

HealthEquity, Inc. provides technology-enabled service platforms to consumers and employers in the United States. The company is headquartered in Draper, Utah.

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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