Eli Lilly and Company (LLY)vsNovartis AG ADR (NVS)
LLY
Eli Lilly and Company
$918.05
-0.06%
HEALTHCARE · Cap: $885.28B
NVS
Novartis AG ADR
$148.19
-1.08%
HEALTHCARE · Cap: $296.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 15% more annual revenue ($65.18B vs $56.67B). LLY leads profitability with a 31.7% profit margin vs 24.7%. 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+
NVS
Buy51
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
-243.7%
Fair Value
$48.62
Current Price
$148.19
$99.57 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 31 in profit
Keeps 25 of every $100 in revenue as profit
Strong operational efficiency at 27.8%
Generating 1.6B in free cash flow
Areas to Watch
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 31.0x book value
2.2% revenue growth
Grey zone — moderate risk
Expensive relative to growth rate
Earnings declined 11.6%
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 : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 27.8%.
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 : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, PEG Ratio.
Key Dynamics to Monitor
LLY profiles as a growth stock while NVS is a value play — different risk/reward profiles.
NVS 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.
NVS generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
LLY scores higher overall (78/100 vs 51/100), 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 →Novartis AG ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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