WallStSmart

Incyte Corporation (INCY)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 1116% more annual revenue ($65.18B vs $5.36B). LLY leads profitability with a 31.7% profit margin vs 26.7%. INCY appears more attractively valued with a PEG of 0.35. INCY earns a higher WallStSmart Score of 83/100 (A-).

INCY

Exceptional Buy

83

out of 100

Grade: A-

Growth: 8.7Profit: 9.5Value: 9.3Quality: 7.8
Piotroski: 5/9Altman Z: 3.07

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

INCYUndervalued (+84.2%)

Margin of Safety

+84.2%

Fair Value

$624.90

Current Price

$99.10

$525.80 discount

UndervaluedFair: $624.90Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INCY6 strengths · Avg: 9.5/10
PEG RatioValuation
0.3510/10

Growing faster than its price suggests

Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

EPS GrowthGrowth
83.8%10/10

Earnings expanding 83.8% YoY

Altman Z-ScoreHealth
3.0710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

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

INCY0 concerns · Avg: 0/10

No major concerns identified

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
31.5x2/10

Trading at 31.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : INCY

The strongest argument for INCY centers on PEG Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 26.7% and operating margin at 25.5%. Revenue growth of 20.9% 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 : INCY

No major red flags identified for INCY, but monitor valuation.

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

INCY carries more volatility with a beta of 0.86 — 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.

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

Bottom Line

INCY scores higher overall (83/100 vs 78/100), backed by strong 26.7% margins and 20.9% revenue growth. 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.

Incyte Corporation

HEALTHCARE · BIOTECHNOLOGY · USA

Incyte Corp is an American pharmaceutical company based in Alapocas, Delaware.

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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