Eli Lilly and Company (LLY)vsMerck & Company Inc (MRK)
LLY
Eli Lilly and Company
$918.05
-0.06%
HEALTHCARE · Cap: $885.28B
MRK
Merck & Company Inc
$114.50
-0.26%
HEALTHCARE · Cap: $285.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 0% more annual revenue ($65.18B vs $65.01B). LLY leads profitability with a 31.7% profit margin vs 28.1%. LLY appears more attractively valued with a PEG of 1.06. LLY earns a higher WallStSmart Score of 78/100 (B+).
LLY
Strong Buy78
out of 100
Grade: B+
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+14.6%
Fair Value
$1074.06
Current Price
$918.05
$156.01 discount
Margin of Safety
-130.7%
Fair Value
$49.50
Current Price
$114.50
$65.00 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.9%
Revenue surging 42.6% year-over-year
Earnings expanding 51.4% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 31.0x book value
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bear Case : LLY
The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 43.1x leaves little room for execution misses. Debt-to-equity of 1.60 is elevated, increasing financial risk.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
LLY profiles as a growth stock while MRK is a value 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.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
LLY scores higher overall (78/100 vs 59/100), backed by strong 31.7% margins and 42.6% revenue growth. Both earn "Strong Buy" and "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.
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.
Visit Website →Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?