Eli Lilly and Company (LLY)vsVerastem Inc (VSTM)
LLY
Eli Lilly and Company
$1,289.42
+0.50%
HEALTHCARE · Cap: $1.12T
VSTM
Verastem Inc
$9.84
-2.62%
HEALTHCARE · Cap: $1.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 90920% more annual revenue ($79.67B vs $87.53M). LLY leads profitability with a 33.5% profit margin vs -231.6%. LLY earns a higher WallStSmart Score of 76/100 (B+).
LLY
Strong Buy76
out of 100
Grade: B+
VSTM
Avoid28
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LLY.
Margin of Safety
+76.9%
Fair Value
$25.33
Current Price
$9.84
$15.49 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 79 in profit
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 54.2%
Revenue surging 47.7% year-over-year
Earnings expanding 26.2% YoY
Revenue surging 1775.0% year-over-year
Areas to Watch
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 33.9x book value
Trading at 17.9x book value
0.0% earnings growth
Smaller company, higher risk/reward
Elevated debt levels
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 33.5% and operating margin at 54.2%. Revenue growth of 47.7% demonstrates continued momentum.
Bull Case : VSTM
The strongest argument for VSTM centers on Revenue Growth. Revenue growth of 1775.0% demonstrates continued momentum.
Bear Case : LLY
The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 42.2x leaves little room for execution misses. Debt-to-equity of 1.62 is elevated, increasing financial risk.
Bear Case : VSTM
The primary concerns for VSTM are Price/Book, EPS Growth, Market Cap. Debt-to-equity of 1.69 is elevated, increasing financial risk.
Key Dynamics to Monitor
LLY profiles as a growth stock while VSTM is a hypergrowth play — different risk/reward profiles.
LLY carries more volatility with a beta of 0.45 — expect wider price swings.
VSTM is growing revenue faster at 1775.0% — 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 28/100), backed by strong 33.5% margins and 47.7% revenue growth. VSTM offers better value entry with a 76.9% margin of safety. Both earn "Strong Buy" and "Avoid" 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 →Verastem Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Verastem, Inc., a developing-stage biopharmaceutical company focused on developing and commercializing life-enhancing drugs for cancer patients. The company is headquartered in Needham, Massachusetts.
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