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ELAN vs GH

ELAN
Elanco Animal Health Incorporated
NEUTRAL
Price
$22.75
Market Cap
$11.36B
Sector
Healthcare
AI Confidence
80%
GH
Guardant Health, Inc.
NEUTRAL
Price
$87.17
Market Cap
$11.43B
Sector
Healthcare
AI Confidence
75%

Valuation

P/E Ratio
ELAN
--
GH
--
Forward P/E
ELAN
19.47
GH
-140.56
P/B Ratio
ELAN
1.73
GH
-114.7
P/S Ratio
ELAN
2.41
GH
11.64
EV/EBITDA
ELAN
16.75
GH
-30.12

Profitability

Gross Margin
ELAN
55.0%
GH
64.46%
Operating Margin
ELAN
2.27%
GH
-42.91%
Profit Margin
ELAN
-4.92%
GH
-42.39%
ROE
ELAN
-3.67%
GH
--
ROA
ELAN
1.25%
GH
-15.58%

Growth

Revenue Growth
ELAN
12.2%
GH
39.4%
Earnings Growth
ELAN
--
GH
--

Financial Health

Debt/Equity
ELAN
0.68
GH
--
Current Ratio
ELAN
2.17
GH
4.84
Quick Ratio
ELAN
1.0
GH
4.42

Dividends

Dividend Yield
ELAN
--
GH
--
Payout Ratio
ELAN
0.0%
GH
0.0%

AI Verdict

ELAN NEUTRAL

ELAN exhibits a critical divergence between market sentiment and fundamental health, highlighted by a very weak Piotroski F-Score of 2/9. While the company has seen a massive 1-year price surge of 140.5% and maintains strong analyst support (Strong Buy), the underlying financials show negative profit margins and negative ROE. Revenue growth remains positive at 12.2%, and the company consistently beats earnings estimates, but the high PEG ratio of 3.83 suggests the stock is significantly overvalued relative to its actual growth. The outlook is neutral as the market bets on a turnaround that the current deterministic health scores do not yet support.

Strengths
Strong Gross Margin of 55.00%
Consistent track record of beating earnings estimates (3/4 last 4 quarters)
Positive YoY and Q/Q revenue growth (~12%)
Risks
Very weak Piotroski F-Score (2/9) indicating deteriorating financial health
Negative Profit Margin (-4.92%) and negative ROE (-3.67%)
High PEG Ratio (3.83) indicating overvaluation relative to growth
GH NEUTRAL

Guardant Health presents a classic high-growth, pre-profitability profile, evidenced by a stable but mediocre Piotroski F-Score of 4/9. While the company demonstrates impressive top-line momentum with 39.4% YoY revenue growth and a strong current ratio of 4.84, it continues to operate with significant negative margins and negative shareholder equity. The stark divergence between the 'Strong Buy' analyst consensus and the bearish insider selling suggests a disconnect between institutional growth projections and internal sentiment. Overall, the stock is a speculative growth play where valuation is driven by future market penetration rather than current fundamental value.

Strengths
Strong revenue growth (39.4% YoY)
Excellent short-term liquidity (Current Ratio 4.84)
Robust gross margins (64.46%) indicating strong product pricing power
Risks
Significant negative profitability (Operating Margin -42.91%)
Negative shareholder equity (Price/Book -114.70)
Bearish insider activity with recent sales by the CFO and Directors

Compare Another Pair

ELAN vs GH: Head-to-Head Comparison

This page compares Elanco Animal Health Incorporated (ELAN) and Guardant Health, Inc. (GH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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