Eli Lilly and Company (LLY)vsUnitedHealth Group Incorporated (UNH)
LLY
Eli Lilly and Company
$1,196.03
+0.86%
HEALTHCARE · Cap: $1.02T
UNH
UnitedHealth Group Incorporated
$420.74
-0.67%
HEALTHCARE · Cap: $391.69B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 523% more annual revenue ($450.13B vs $72.25B). LLY leads profitability with a 35.0% profit margin vs 3.1%. UNH appears more attractively valued with a PEG of 1.43. LLY earns a higher WallStSmart Score of 76/100 (B+).
LLY
Strong Buy76
out of 100
Grade: B+
UNH
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LLY.
Margin of Safety
-31.5%
Fair Value
$322.02
Current Price
$420.74
$98.72 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 81 in profit
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 49.4%
Revenue surging 55.5% year-over-year
Earnings expanding 169.9% YoY
Mega-cap, among the largest globally
Earnings expanding 61.5% YoY
Generating 8.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 34.3x book value
Premium valuation, high expectations priced in
0.4% revenue growth
3.1% margin — thin
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 35.0% and operating margin at 49.4%. Revenue growth of 55.5% demonstrates continued momentum.
Bull Case : UNH
The strongest argument for UNH centers on Market Cap, EPS Growth, Free Cash Flow. PEG of 1.43 suggests the stock is reasonably priced for its growth.
Bear Case : LLY
The primary concerns for LLY are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 41.8x leaves little room for execution misses.
Bear Case : UNH
The primary concerns for UNH are P/E Ratio, Revenue Growth, Profit Margin. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
LLY profiles as a growth stock while UNH is a value play — different risk/reward profiles.
UNH carries more volatility with a beta of 0.63 — expect wider price swings.
LLY is growing revenue faster at 55.5% — sustainability is the question.
UNH generates stronger free cash flow (8.1B), providing more financial flexibility.
Bottom Line
LLY scores higher overall (76/100 vs 62/100), backed by strong 35.0% margins and 55.5% 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.
Visit Website →UnitedHealth Group Incorporated
HEALTHCARE · HEALTHCARE PLANS · 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. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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