Eli Lilly and Company (LLY)vsZoetis Inc (ZTS)
LLY
Eli Lilly and Company
$903.02
-0.83%
HEALTHCARE · Cap: $814.96B
ZTS
Zoetis Inc
$115.93
+0.61%
HEALTHCARE · Cap: $50.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 588% more annual revenue ($65.18B vs $9.47B). LLY leads profitability with a 31.7% profit margin vs 28.2%. LLY appears more attractively valued with a PEG of 0.98. LLY earns a higher WallStSmart Score of 80/100 (A-).
LLY
Exceptional Buy80
out of 100
Grade: A-
ZTS
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.9%
Fair Value
$1073.59
Current Price
$903.02
$170.57 discount
Margin of Safety
-29.5%
Fair Value
$99.36
Current Price
$115.93
$16.57 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.9%
Revenue surging 42.6% year-over-year
Earnings expanding 51.4% YoY
Every $100 of equity generates 66 in profit
Strong operational efficiency at 34.7%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Areas to Watch
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 30.4x book value
Expensive relative to growth rate
Trading at 14.8x book value
3.0% revenue growth
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 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.
Bull Case : ZTS
The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.2% and operating margin at 34.7%.
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 : ZTS
The primary concerns for ZTS are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 2.85 is elevated, increasing financial risk.
Key Dynamics to Monitor
LLY profiles as a growth stock while ZTS is a value play — different risk/reward profiles.
ZTS carries more volatility with a beta of 0.95 — expect wider price swings.
LLY is growing revenue faster at 42.6% — sustainability is the question.
ZTS generates stronger free cash flow (732M), providing more financial flexibility.
Bottom Line
LLY scores higher overall (80/100 vs 64/100), backed by strong 31.7% margins and 42.6% revenue growth. Both earn "Exceptional 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 →Zoetis Inc
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Zoetis Inc. is an American drug company, the world's largest producer of medicine and vaccinations for pets and livestock.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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