WallStSmart

Eli Lilly and Company (LLY)vsTakeda Pharmaceutical Co Ltd ADR (TAK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Takeda Pharmaceutical Co Ltd ADR generates 6750% more annual revenue ($4.46T vs $65.18B). LLY leads profitability with a 31.7% profit margin vs 2.5%. TAK appears more attractively valued with a PEG of 0.39. LLY earns a higher WallStSmart Score of 80/100 (A-).

LLY

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 9.3Quality: 8.0
Piotroski: 6/9Altman Z: 2.06

TAK

Buy

60

out of 100

Grade: C

Growth: 6.7Profit: 6.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LLYUndervalued (+15.9%)

Margin of Safety

+15.9%

Fair Value

$1073.59

Current Price

$903.02

$170.57 discount

UndervaluedFair: $1073.59Overvalued
TAKSignificantly Overvalued (-77.5%)

Margin of Safety

-77.5%

Fair Value

$10.30

Current Price

$18.02

$7.72 premium

UndervaluedFair: $10.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$814.96B10/10

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

TAK6 strengths · Avg: 9.8/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Return on EquityProfitability
150.0%10/10

Every $100 of equity generates 150 in profit

EPS GrowthGrowth
330.2%10/10

Earnings expanding 330.2% YoY

Free Cash FlowQuality
$317.47B10/10

Generating 317.5B in free cash flow

Market CapQuality
$56.33B9/10

Large-cap with strong market position

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
30.4x2/10

Trading at 30.4x book value

TAK3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

P/E RatioValuation
81.0x2/10

Premium valuation, high expectations priced in

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 : TAK

The strongest argument for TAK centers on PEG Ratio, Price/Book, Return on Equity. PEG of 0.39 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 : TAK

The primary concerns for TAK are Revenue Growth, Profit Margin, P/E Ratio. A P/E of 81.0x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

LLY profiles as a growth stock while TAK 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.

TAK generates stronger free cash flow (317.5B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (80/100 vs 60/100), 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.

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Takeda Pharmaceutical Co Ltd ADR

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Takeda Pharmaceutical Company Limited is engaged in the research, development, manufacture and marketing of pharmaceuticals, over-the-counter drugs and quasi-drug consumer products, and other health care products. The company is headquartered in Tokyo, Japan.

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