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EW vs LLY

EW
Edwards Lifesciences Corporation
NEUTRAL
Price
$86.30
Market Cap
$50.08B
Sector
Healthcare
AI Confidence
72%
LLY
Eli Lilly and Company
NEUTRAL
Price
$958.65
Market Cap
$858.01B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
EW
37.85
LLY
41.7
Forward P/E
EW
35.22
LLY
22.78
P/B Ratio
EW
4.91
LLY
32.33
P/S Ratio
EW
8.51
LLY
13.16
EV/EBITDA
EW
26.28
LLY
27.08

Profitability

Gross Margin
EW
78.19%
LLY
83.04%
Operating Margin
EW
27.37%
LLY
44.9%
Profit Margin
EW
23.25%
LLY
31.67%
ROE
EW
13.49%
LLY
101.16%
ROA
EW
7.71%
LLY
19.41%

Growth

Revenue Growth
EW
14.7%
LLY
42.6%
Earnings Growth
EW
-90.3%
LLY
51.4%

Financial Health

Debt/Equity
EW
0.07
LLY
1.65
Current Ratio
EW
4.0
LLY
1.58
Quick Ratio
EW
2.98
LLY
0.78

Dividends

Dividend Yield
EW
--
LLY
0.68%
Payout Ratio
EW
0.0%
LLY
26.14%

AI Verdict

EW NEUTRAL

Edwards Lifesciences (EW) trades near its 52-week high at $86.30, reflecting strong recent price momentum (+30.4% 1Y, +18.3% 1M), supported by consistent revenue growth of 14.7% YoY and a solid track record of earnings beats over the past four quarters (avg. surprise: 9.24%). The company exhibits best-in-class profitability with a 78.2% gross margin and 27.4% operating margin, significantly above sector averages, while maintaining a fortress balance sheet with a Debt/Equity ratio of just 0.07 and a Current Ratio of 4.0. However, near-term earnings growth is deeply negative (-90.3% YoY), creating a dislocation between top-line strength and bottom-line performance, and insider selling worth $4.7M over the last six months raises caution. While analysts maintain a 'buy' recommendation with a $93.94 target implying 8.9% upside, valuation appears stretched relative to growth, particularly when compared to higher-growth peers like BNTX or capital-efficient leaders like ZTS.

Strengths
Revenue growth of 14.7% YoY significantly exceeds sector average of 10.24%
Exceptional profitability: 78.19% gross margin and 27.37% operating margin, both well above healthcare sector averages
Superior financial health with Debt/Equity of 0.07 vs. sector avg of 1.40 and Current Ratio of 4.0 indicating strong liquidity
Risks
Severe earnings contraction: YoY earnings growth down 90.3%, raising concerns about cost structure or one-time charges
High valuation metrics: P/E of 37.85 and Forward P/E of 35.22 appear stretched given negative earnings growth
Insider selling pressure: $4.7M in insider sales over last 6 months with no buys, including CFO and multiple officers
LLY NEUTRAL

LLY shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (31.7% margin)
Strong revenue growth of 42.6%
Strong ROE of 101.2%
Risks
High valuation with P/E of 41.7
Premium vs Graham Number ($123.85)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

EW vs LLY: Head-to-Head Comparison

This page compares Edwards Lifesciences Corporation (EW) and Eli Lilly and Company (LLY) 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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