WallStSmart

Eli Lilly and Company (LLY)vsPhathom Pharmaceuticals Inc (PHAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 37122% more annual revenue ($65.18B vs $175.11M). LLY leads profitability with a 31.7% profit margin vs -126.4%. LLY earns a higher WallStSmart Score of 78/100 (B+).

LLY

Strong Buy

78

out of 100

Grade: B+

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

PHAT

Avoid

31

out of 100

Grade: F

Growth: 6.3Profit: 2.0Value: 4.0Quality: 6.5
Piotroski: 4/9Altman Z: -4.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LLY.

PHATSignificantly Overvalued (-29.3%)

Margin of Safety

-29.3%

Fair Value

$9.46

Current Price

$11.20

$1.74 premium

UndervaluedFair: $9.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

PHAT2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
94.1%10/10

Revenue surging 94.1% year-over-year

Debt/EquityHealth
-0.0110/10

Conservative balance sheet, low leverage

Areas to Watch

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

PHAT4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$935.69M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3489.0%2/10

ROE of -3489.0% — below average capital efficiency

Free Cash FlowQuality
$-5.12M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : PHAT

The strongest argument for PHAT centers on Revenue Growth, Debt/Equity. Revenue growth of 94.1% demonstrates continued momentum.

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.

Bear Case : PHAT

The primary concerns for PHAT are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

LLY profiles as a growth stock while PHAT is a hypergrowth play — different risk/reward profiles.

PHAT carries more volatility with a beta of 0.61 — expect wider price swings.

PHAT is growing revenue faster at 94.1% — sustainability is the question.

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

Bottom Line

LLY scores higher overall (78/100 vs 31/100), backed by strong 31.7% margins and 42.6% revenue growth. Both earn "Strong Buy" and "Avoid" 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.

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Phathom Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Phathom Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company is headquartered in Florham Park, New Jersey.

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