WallStSmart

Eli Lilly and Company (LLY)vsResMed Inc (RMD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 1429% more annual revenue ($86.46B vs $5.65B). LLY leads profitability with a 31.9% profit margin vs 27.0%. RMD appears more attractively valued with a PEG of 1.34. LLY earns a higher WallStSmart Score of 74/100 (B).

LLY

Strong Buy

74

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.16

RMD

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 4.7Quality: 9.0
Piotroski: 5/9Altman Z: 4.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LLY.

RMDSignificantly Overvalued (-21.2%)

Margin of Safety

-21.2%

Fair Value

$214.26

Current Price

$235.30

$21.04 premium

UndervaluedFair: $214.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$1.26T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
68.5%10/10

Every $100 of equity generates 68 in profit

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
53.7%10/10

Strong operational efficiency at 53.7%

Revenue GrowthGrowth
38.6%10/10

Revenue surging 38.6% year-over-year

Free Cash FlowQuality
$8.22B8/10

Generating 8.2B in free cash flow

RMD6 strengths · Avg: 9.2/10
Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Altman Z-ScoreHealth
4.5210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
27.0%9/10

Keeps 27 of every $100 in revenue as profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.65B8/10

Generating 1.6B in free cash flow

Areas to Watch

LLY3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.233/10

Elevated debt levels

P/E RatioValuation
46.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
30.0x2/10

Trading at 30.0x book value

RMD1 concerns · Avg: 4.0/10
EPS GrowthGrowth
2.4%4/10

2.4% earnings growth

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 31.9% and operating margin at 53.7%. Revenue growth of 38.6% demonstrates continued momentum.

Bull Case : RMD

The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.0% and operating margin at 30.9%. PEG of 1.34 suggests the stock is reasonably priced for its growth.

Bear Case : LLY

The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 46.0x leaves little room for execution misses.

Bear Case : RMD

The primary concerns for RMD are EPS Growth.

Key Dynamics to Monitor

LLY profiles as a growth stock while RMD is a mature play — different risk/reward profiles.

RMD carries more volatility with a beta of 0.75 — expect wider price swings.

LLY is growing revenue faster at 38.6% — sustainability is the question.

LLY generates stronger free cash flow (8.2B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (74/100 vs 65/100), backed by strong 31.9% margins and 38.6% 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.

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ResMed Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.

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