WallStSmart

Eli Lilly and Company (LLY)vsSmith & Nephew SNATS Inc (SNN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 957% more annual revenue ($65.18B vs $6.16B). LLY leads profitability with a 31.7% profit margin vs 10.1%. SNN appears more attractively valued with a PEG of 0.63. 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

SNN

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 8.0Quality: 7.5
Piotroski: 4/9Altman Z: 2.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LLY.

SNNUndervalued (+43.0%)

Margin of Safety

+43.0%

Fair Value

$61.96

Current Price

$30.38

$31.58 discount

UndervaluedFair: $61.96Overvalued

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

SNN2 strengths · Avg: 9.0/10
EPS GrowthGrowth
70.4%10/10

Earnings expanding 70.4% YoY

PEG RatioValuation
0.638/10

Growing faster than its price suggests

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

SNN1 concerns · Avg: 4.0/10
Price/BookValuation
12.2x4/10

Trading at 12.2x book value

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 : SNN

The strongest argument for SNN centers on EPS Growth, PEG Ratio. PEG of 0.63 suggests the stock is reasonably priced for its growth.

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 : SNN

The primary concerns for SNN are Price/Book.

Key Dynamics to Monitor

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

SNN carries more volatility with a beta of 0.74 — expect wider price swings.

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

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

Bottom Line

LLY scores higher overall (78/100 vs 62/100), backed by strong 31.7% margins and 42.6% revenue growth. SNN offers better value entry with a 43.0% 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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Smith & Nephew SNATS Inc

HEALTHCARE · MEDICAL DEVICES · USA

Smith & Nephew plc develops, manufactures, markets and sells medical devices worldwide. The company is headquartered in Watford, the United Kingdom.

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