WallStSmart

Eli Lilly and Company (LLY)vsWest Pharmaceutical Services Inc (WST)

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Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 2499% more annual revenue ($86.46B vs $3.33B). LLY leads profitability with a 31.9% profit margin vs 17.0%. LLY appears more attractively valued with a PEG of 1.36. LLY earns a higher WallStSmart Score of 74/100 (B).

LLY

Strong Buy

74

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.16

WST

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 2.0Quality: 8.5
Piotroski: 4/9Altman Z: 4.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LLY.

WSTSignificantly Overvalued (-43.3%)

Margin of Safety

-43.3%

Fair Value

$171.84

Current Price

$399.81

$227.97 premium

UndervaluedFair: $171.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$1.26T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
68.5%10/10

Every $100 of equity generates 68 in profit

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
53.7%10/10

Strong operational efficiency at 53.7%

Revenue GrowthGrowth
38.6%10/10

Revenue surging 38.6% year-over-year

Free Cash FlowQuality
$8.22B8/10

Generating 8.2B in free cash flow

WST4 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
4.7310/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 22 in profit

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Operating MarginProfitability
22.5%8/10

Strong operational efficiency at 22.5%

Areas to Watch

LLY3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.233/10

Elevated debt levels

P/E RatioValuation
46.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
30.0x2/10

Trading at 30.0x book value

WST3 concerns · Avg: 2.7/10
Price/BookValuation
9.4x4/10

Trading at 9.4x book value

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
51.0x2/10

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 31.9% and operating margin at 53.7%. Revenue growth of 38.6% demonstrates continued momentum.

Bull Case : WST

The strongest argument for WST centers on Altman Z-Score, Return on Equity, Debt/Equity. Profitability is solid with margins at 17.0% and operating margin at 22.5%. Revenue growth of 13.8% demonstrates continued momentum.

Bear Case : LLY

The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 46.0x leaves little room for execution misses.

Bear Case : WST

The primary concerns for WST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 51.0x leaves little room for execution misses.

Key Dynamics to Monitor

LLY profiles as a growth stock while WST is a mature play — different risk/reward profiles.

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

LLY is growing revenue faster at 38.6% — sustainability is the question.

LLY generates stronger free cash flow (8.2B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (74/100 vs 56/100), backed by strong 31.9% margins and 38.6% 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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West Pharmaceutical Services Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.

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