WallStSmart

Eli Lilly and Company (LLY)vsUniversal Health Services Inc (UHS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 307% more annual revenue ($72.25B vs $17.76B). LLY leads profitability with a 35.0% profit margin vs 8.6%. UHS appears more attractively valued with a PEG of 1.17. 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

UHS

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 8.7Quality: 6.5
Piotroski: 6/9Altman Z: 2.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LLY.

UHSUndervalued (+40.6%)

Margin of Safety

+40.6%

Fair Value

$389.40

Current Price

$169.96

$219.44 discount

UndervaluedFair: $389.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$869.41B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
107.5%10/10

Every $100 of equity generates 108 in profit

Profit MarginProfitability
35.0%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
49.4%10/10

Strong operational efficiency at 49.4%

Revenue GrowthGrowth
55.5%10/10

Revenue surging 55.5% year-over-year

EPS GrowthGrowth
169.9%10/10

Earnings expanding 169.9% YoY

UHS3 strengths · Avg: 9.7/10
P/E RatioValuation
7.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
21.4%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
34.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.603/10

Elevated debt levels

Price/BookValuation
27.2x2/10

Trading at 27.2x book value

UHS0 concerns · Avg: 0/10

No major concerns identified

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 35.0% and operating margin at 49.4%. Revenue growth of 55.5% demonstrates continued momentum.

Bull Case : UHS

The strongest argument for UHS centers on P/E Ratio, Price/Book, Return on Equity. PEG of 1.17 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 : UHS

No major red flags identified for UHS, but monitor valuation.

Key Dynamics to Monitor

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

UHS carries more volatility with a beta of 1.13 — expect wider price swings.

LLY is growing revenue faster at 55.5% — sustainability is the question.

LLY generates stronger free cash flow (3.0B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (78/100 vs 72/100), backed by strong 35.0% margins and 55.5% revenue growth. UHS offers better value entry with a 40.6% margin of safety. Both earn "Strong Buy" and "Strong 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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Universal Health Services Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services.

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