Eli Lilly and Company (LLY)vsRoyalty Pharma Plc (RPRX)
LLY
Eli Lilly and Company
$878.24
+0.96%
HEALTHCARE · Cap: $786.04B
RPRX
Royalty Pharma Plc
$46.35
-1.26%
HEALTHCARE · Cap: $26.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 2641% more annual revenue ($65.18B vs $2.38B). RPRX leads profitability with a 32.4% profit margin vs 31.7%. LLY appears more attractively valued with a PEG of 0.98. LLY earns a higher WallStSmart Score of 80/100 (A-).
LLY
Exceptional Buy80
out of 100
Grade: A-
RPRX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+18.1%
Fair Value
$1072.66
Current Price
$878.24
$194.42 discount
Margin of Safety
-17.3%
Fair Value
$37.74
Current Price
$46.35
$8.61 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
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 57.7%
Areas to Watch
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 29.6x book value
Moderate valuation
4.8% revenue growth
Elevated debt levels
Weak financial health signals
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 : RPRX
The strongest argument for RPRX centers on Profit Margin, Operating Margin. Profitability is solid with margins at 32.4% and operating margin at 57.7%.
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 : RPRX
The primary concerns for RPRX are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
LLY profiles as a growth stock while RPRX is a value play — different risk/reward profiles.
LLY carries more volatility with a beta of 0.43 — expect wider price swings.
LLY is growing revenue faster at 42.6% — sustainability is the question.
RPRX generates stronger free cash flow (827M), providing more financial flexibility.
Bottom Line
LLY scores higher overall (80/100 vs 57/100), backed by strong 31.7% margins and 42.6% revenue growth. Both earn "Exceptional 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 →Royalty Pharma Plc
HEALTHCARE · BIOTECHNOLOGY · USA
Royalty Pharma plc is a buyer of biopharmaceutical royalties and funder of innovations in the biopharmaceutical industry in the United States. The company is headquartered in New York, New York.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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