WallStSmart

Keurig Dr Pepper Inc (KDP)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 293% more annual revenue ($65.18B vs $16.60B). LLY leads profitability with a 31.7% profit margin vs 12.5%. KDP appears more attractively valued with a PEG of 0.89. LLY earns a higher WallStSmart Score of 80/100 (A-).

KDP

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 8.7Quality: 4.3
Piotroski: 5/9Altman Z: 1.06

LLY

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 8.7Quality: 8.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KDPUndervalued (+2.7%)

Margin of Safety

+2.7%

Fair Value

$30.72

Current Price

$26.37

$4.35 discount

UndervaluedFair: $30.72Overvalued
LLYUndervalued (+14.0%)

Margin of Safety

+14.0%

Fair Value

$1065.17

Current Price

$916.31

$148.86 discount

UndervaluedFair: $1065.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KDP4 strengths · Avg: 8.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.898/10

Growing faster than its price suggests

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
22.6%8/10

Strong operational efficiency at 22.6%

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$808.22B10/10

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

KDP1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
1.062/10

Distress zone — elevated risk

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
39.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.603/10

Elevated debt levels

Price/BookValuation
30.9x2/10

Trading at 30.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : KDP

The strongest argument for KDP centers on Price/Book, PEG Ratio, P/E Ratio. Revenue growth of 10.5% demonstrates continued momentum. PEG of 0.89 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 : KDP

The primary concerns for KDP are Altman Z-Score.

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

KDP 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.

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

Bottom Line

LLY scores higher overall (80/100 vs 69/100), backed by strong 31.7% margins and 42.6% 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.

Keurig Dr Pepper Inc

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

Keurig Dr Pepper Inc. is a beverage company in the United States and internationally. The company is headquartered in Burlington, Massachusetts.

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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