WallStSmart

Eli Lilly and Company (LLY)vsQnity Electronics, Inc (Q)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 1271% more annual revenue ($65.18B vs $4.75B). LLY leads profitability with a 31.7% profit margin vs 14.6%. LLY appears more attractively valued with a PEG of 0.97. LLY earns a higher WallStSmart Score of 80/100 (A-).

LLY

Exceptional Buy

80

out of 100

Grade: A-

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

Q

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 6.0Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LLYUndervalued (+14.0%)

Margin of Safety

+14.0%

Fair Value

$1065.17

Current Price

$916.31

$148.86 discount

UndervaluedFair: $1065.17Overvalued
QSignificantly Overvalued (-410.3%)

Margin of Safety

-410.3%

Fair Value

$22.44

Current Price

$120.26

$97.82 premium

UndervaluedFair: $22.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Q1 strengths · Avg: 8.0/10
Operating MarginProfitability
20.4%8/10

Strong operational efficiency at 20.4%

Areas to Watch

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

Q4 concerns · Avg: 3.3/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

P/E RatioValuation
35.9x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
8.0%3/10

ROE of 8.0% — below average capital efficiency

EPS GrowthGrowth
-52.8%2/10

Earnings declined 52.8%

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 : Q

The strongest argument for Q centers on Operating Margin.

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 : Q

The primary concerns for Q are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

LLY profiles as a growth stock while Q is a value play — different risk/reward profiles.

LLY is growing revenue faster at 42.6% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LLY scores higher overall (80/100 vs 49/100), backed by strong 31.7% margins and 42.6% revenue growth. Both earn "Exceptional Buy" and "Hold" 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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Qnity Electronics, Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.

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