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HCM vs LLY

HCM
HUTCHMED (China) Limited
NEUTRAL
Price
$15.24
Market Cap
$2.62B
Sector
Healthcare
AI Confidence
80%
LLY
Eli Lilly and Company
NEUTRAL
Price
$958.65
Market Cap
$858.01B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
HCM
5.75
LLY
41.7
Forward P/E
HCM
29.34
LLY
22.78
P/B Ratio
HCM
2.12
LLY
32.33
P/S Ratio
HCM
4.78
LLY
13.16
EV/EBITDA
HCM
-458.18
LLY
27.08

Profitability

Gross Margin
HCM
11.64%
LLY
83.04%
Operating Margin
HCM
-13.16%
LLY
44.9%
Profit Margin
HCM
83.3%
LLY
31.67%
ROE
HCM
45.25%
LLY
101.16%
ROA
HCM
-1.62%
LLY
19.41%

Growth

Revenue Growth
HCM
-16.5%
LLY
42.6%
Earnings Growth
HCM
-98.1%
LLY
51.4%

Financial Health

Debt/Equity
HCM
0.08
LLY
1.65
Current Ratio
HCM
4.96
LLY
1.58
Quick Ratio
HCM
4.81
LLY
0.78

Dividends

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

AI Verdict

HCM NEUTRAL

HCM presents a contradictory profile: it is fundamentally undervalued based on deterministic metrics, with a Piotroski F-Score of 5/9 (Stable) and a current price ($15.24) well below both its Graham Number ($20.72) and Intrinsic Value ($18.55). However, the company's operational health is concerning, characterized by negative revenue growth (-16.5%) and a severe collapse in earnings (-98.1% YoY). While the balance sheet is exceptionally strong with very low debt and high liquidity, the core business is currently unprofitable at the operating level. The investment case relies on a turnaround or a catalyst to realize the analyst target price of $22.85.

Strengths
Strong liquidity with a Current Ratio of 4.96
Very low leverage (Debt/Equity of 0.08)
Trading at a significant discount to Graham Number ($20.72)
Risks
Severe earnings contraction (-98.1% YoY)
Negative operating margin (-13.16%) indicating core business losses
Declining revenue growth (-16.5% YoY)
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

HCM vs LLY: Head-to-Head Comparison

This page compares HUTCHMED (China) Limited (HCM) 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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