WallStSmart

Eli Lilly and Company (LLY)vsSolventum Corp. (SOLV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 859% more annual revenue ($79.67B vs $8.31B). LLY leads profitability with a 33.5% profit margin vs 17.3%. LLY appears more attractively valued with a PEG of 1.11. LLY earns a higher WallStSmart Score of 76/100 (B+).

LLY

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.06

SOLV

Buy

61

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 7.0Quality: 5.0
Piotroski: 5/9Altman Z: 1.62

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$994.92B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
54.2%10/10

Strong operational efficiency at 54.2%

Revenue GrowthGrowth
47.7%10/10

Revenue surging 47.7% year-over-year

EPS GrowthGrowth
26.2%8/10

Earnings expanding 26.2% YoY

SOLV2 strengths · Avg: 9.5/10
P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
29.9%9/10

Every $100 of equity generates 30 in profit

Areas to Watch

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.623/10

Elevated debt levels

Price/BookValuation
29.4x2/10

Trading at 29.4x book value

SOLV4 concerns · Avg: 3.8/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

EPS GrowthGrowth
3.9%4/10

3.9% earnings growth

Altman Z-ScoreHealth
1.624/10

Distress zone — elevated risk

Debt/EquityHealth
1.103/10

Elevated debt levels

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 33.5% and operating margin at 54.2%. Revenue growth of 47.7% demonstrates continued momentum.

Bull Case : SOLV

The strongest argument for SOLV centers on P/E Ratio, Return on Equity. Profitability is solid with margins at 17.3% and operating margin at 9.8%. PEG of 1.22 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 1.62 is elevated, increasing financial risk.

Bear Case : SOLV

The primary concerns for SOLV are Revenue Growth, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

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

SOLV carries more volatility with a beta of 0.69 — expect wider price swings.

LLY is growing revenue faster at 47.7% — sustainability is the question.

LLY generates stronger free cash flow (7.8B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (76/100 vs 61/100), backed by strong 33.5% margins and 47.7% 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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Solventum Corp.

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. The company is headquartered in Saint Paul, Minnesota.

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