WallStSmart

Eli Lilly and Company (LLY)vsXOMA Royalty Corporation (XOMA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 148698% more annual revenue ($72.25B vs $48.55M). XOMA leads profitability with a 69.6% profit margin vs 35.0%. XOMA trades at a lower P/E of 28.7x. LLY earns a higher WallStSmart Score of 76/100 (B+).

LLY

Strong Buy

76

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 4.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.06

XOMA

Hold

46

out of 100

Grade: D+

Growth: 7.3Profit: 6.5Value: 4.3Quality: 5.5
Piotroski: 4/9Altman Z: -4.80
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LLY.

XOMASignificantly Overvalued (-65.9%)

Margin of Safety

-65.9%

Fair Value

$14.03

Current Price

$40.17

$26.14 premium

UndervaluedFair: $14.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$1.02T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
81.0%10/10

Every $100 of equity generates 81 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

XOMA3 strengths · Avg: 9.7/10
Profit MarginProfitability
69.6%10/10

Keeps 70 of every $100 in revenue as profit

EPS GrowthGrowth
207.9%10/10

Earnings expanding 207.9% YoY

Return on EquityProfitability
27.9%9/10

Every $100 of equity generates 28 in profit

Areas to Watch

LLY4 concerns · Avg: 2.8/10
PEG RatioValuation
1.584/10

Expensive relative to growth rate

Debt/EquityHealth
1.393/10

Elevated debt levels

P/E RatioValuation
41.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
34.7x2/10

Trading at 34.7x book value

XOMA4 concerns · Avg: 3.0/10
P/E RatioValuation
28.7x4/10

Moderate valuation

Market CapQuality
$792.01M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.103/10

Elevated debt levels

Revenue GrowthGrowth
-22.6%2/10

Revenue declined 22.6%

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 : XOMA

The strongest argument for XOMA centers on Profit Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 69.6% and operating margin at -3.9%.

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 : XOMA

The primary concerns for XOMA are P/E Ratio, Market Cap, Debt/Equity.

Key Dynamics to Monitor

LLY profiles as a growth stock while XOMA is a declining play — different risk/reward profiles.

XOMA carries more volatility with a beta of 0.86 — 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 (76/100 vs 46/100), backed by strong 35.0% margins and 55.5% revenue growth. Both earn "Strong Buy" and "Hold" 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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XOMA Royalty Corporation

HEALTHCARE · BIOTECHNOLOGY · USA

XOMA Corporation, a biotech royalty aggregator, discovers and develops therapeutic candidates in the United States, Europe, and Asia Pacific. The company is headquartered in Emeryville, California.

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