WallStSmart

Eli Lilly and Company (LLY)vsPennant Group Inc (PNTG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 6778% more annual revenue ($65.18B vs $947.71M). LLY leads profitability with a 31.7% profit margin vs 3.1%. LLY appears more attractively valued with a PEG of 1.29. 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

PNTG

Buy

59

out of 100

Grade: C

Growth: 10.0Profit: 5.5Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LLY.

PNTGUndervalued (+73.0%)

Margin of Safety

+73.0%

Fair Value

$117.14

Current Price

$30.71

$86.43 discount

UndervaluedFair: $117.14Overvalued

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

PNTG2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
53.2%10/10

Revenue surging 53.2% year-over-year

EPS GrowthGrowth
53.7%10/10

Earnings expanding 53.7% YoY

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

PNTG4 concerns · Avg: 3.5/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

P/E RatioValuation
36.6x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.07B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

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 : PNTG

The strongest argument for PNTG centers on Revenue Growth, EPS Growth. Revenue growth of 53.2% 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 : PNTG

The primary concerns for PNTG are PEG Ratio, P/E Ratio, Market Cap. Thin 3.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

PNTG carries more volatility with a beta of 1.30 — expect wider price swings.

PNTG is growing revenue faster at 53.2% — sustainability is the question.

LLY generates stronger free cash flow (678M), 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. PNTG offers better value entry with a 73.0% margin of safety. 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.

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Pennant Group Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

The Pennant Group, Inc. provides health care services in Arizona, California, Colorado, Idaho, Iowa, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The company is headquartered in Eagle, Idaho.

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