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LLY vs MCK

LLY
Eli Lilly and Company
NEUTRAL
Price
$958.65
Market Cap
$858.01B
Sector
Healthcare
AI Confidence
85%
MCK
McKesson Corporation
BULLISH
Price
$842.09
Market Cap
$104.45B
Sector
Healthcare
AI Confidence
88%

Valuation

P/E Ratio
LLY
41.7
MCK
26.32
Forward P/E
LLY
22.78
MCK
22.88
P/B Ratio
LLY
32.33
MCK
-60.05
P/S Ratio
LLY
13.16
MCK
0.27
EV/EBITDA
LLY
27.08
MCK
17.07

Profitability

Gross Margin
LLY
83.04%
MCK
3.44%
Operating Margin
LLY
44.9%
MCK
1.37%
Profit Margin
LLY
31.67%
MCK
1.04%
ROE
LLY
101.16%
MCK
--
ROA
LLY
19.41%
MCK
4.78%

Growth

Revenue Growth
LLY
42.6%
MCK
10.1%
Earnings Growth
LLY
51.4%
MCK
377.0%

Financial Health

Debt/Equity
LLY
1.65
MCK
--
Current Ratio
LLY
1.58
MCK
0.88
Quick Ratio
LLY
0.78
MCK
0.47

Dividends

Dividend Yield
LLY
0.68%
MCK
0.39%
Payout Ratio
LLY
26.14%
MCK
9.22%

AI Verdict

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)
MCK BULLISH

McKesson Corporation (MCK) presents a compelling investment case supported by robust earnings acceleration, consistent top-line growth, and strong analyst conviction, despite operating in a low-margin, capital-intensive distribution model. The stock has delivered exceptional long-term returns with a 373% five-year gain, underpinned by disciplined execution and favorable healthcare logistics tailwinds. While valuation appears stretched on P/E and the balance sheet lacks transparency, MCK trades at a significant discount to peers on price-to-sales and exhibits superior earnings momentum, with YoY EPS growth nearing 40%. Notably, insider selling raises caution, but the broader fundamental trajectory and sector positioning support continued outperformance.

Strengths
Exceptional earnings growth: 377% YoY and 360.6% QoQ earnings growth reflect strong operational leverage and cost discipline.
Consistent earnings beat record: 22 out of 25 quarters beat estimates, with 10+ consecutive beats and an average surprise of +8.9% over the last five quarters.
Attractive valuation relative to sector: P/S of 0.27 is dramatically below sector average of 1.0+ and peer group, suggesting significant undervaluation on revenue basis.
Risks
Extremely low profitability: 1.04% net margin and 1.37% operating margin reflect razor-thin returns typical of distribution, limiting downside protection.
Severe financial opacity: Missing key metrics (EV, debt, cash, shares outstanding) raises transparency concerns and impedes accurate credit and valuation analysis.
Negative Price/Book ratio (-60.05): Suggests accumulated losses or negative equity, a serious red flag for financial stability and accounting integrity.

Compare Another Pair

LLY vs MCK: Head-to-Head Comparison

This page compares Eli Lilly and Company (LLY) and McKesson Corporation (MCK) 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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