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LLY vs NEPH

LLY
Eli Lilly and Company
NEUTRAL
Price
$851.21
Market Cap
$760.43B
Sector
Healthcare
AI Confidence
85%
NEPH
Nephros, Inc.
BEARISH
Price
$2.88
Market Cap
$30.7M
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
LLY
37.03
NEPH
26.18
Forward P/E
LLY
20.22
NEPH
22.15
P/B Ratio
LLY
28.7
NEPH
3.01
P/S Ratio
LLY
11.67
NEPH
1.63
EV/EBITDA
LLY
25.15
NEPH
20.48

Profitability

Gross Margin
LLY
83.04%
NEPH
61.87%
Operating Margin
LLY
44.9%
NEPH
0.38%
Profit Margin
LLY
31.67%
NEPH
6.35%
ROE
LLY
101.16%
NEPH
12.71%
ROA
LLY
19.41%
NEPH
5.76%

Growth

Revenue Growth
LLY
42.6%
NEPH
22.2%
Earnings Growth
LLY
51.4%
NEPH
-82.4%

Financial Health

Debt/Equity
LLY
1.65
NEPH
0.1
Current Ratio
LLY
1.58
NEPH
4.06
Quick Ratio
LLY
0.78
NEPH
2.82

Dividends

Dividend Yield
LLY
0.73%
NEPH
--
Payout Ratio
LLY
26.14%
NEPH
0.0%

AI Verdict

LLY NEUTRAL

Eli Lilly exhibits a stark divergence between explosive growth and deteriorating fundamental health, evidenced by a weak Piotroski F-Score of 3/9. While the company delivers exceptional ROE (101.16%) and massive YoY revenue growth (42.6%), it trades at a significant premium to both its Graham Number ($123.85) and growth-based intrinsic value ($678.2). The current valuation is driven by high expectations for its drug pipeline, but the low deterministic health score and bearish technical trend suggest a period of consolidation or risk. Overall, it is a high-performance growth engine with concerning balance sheet efficiency metrics.

Strengths
Exceptional profitability with a 31.67% profit margin and 83.04% gross margin
Hyper-growth trajectory with YoY revenue growth of 42.60% and earnings growth of 51.40%
Outstanding Return on Equity (ROE) of 101.16%
Risks
Weak fundamental health indicated by a Piotroski F-Score of 3/9
Extreme valuation premiums (Price/Book of 28.70 and Price/Sales of 11.67)
Liquidity concerns with a Quick Ratio of 0.78, indicating potential short-term pressure
NEPH BEARISH

NEPH presents a contradictory profile with a stable Piotroski F-Score of 4/9 and a very strong balance sheet, yet it is fundamentally overvalued. The current price of $2.88 significantly exceeds both the Graham Number ($1.54) and the Intrinsic Value ($0.77), suggesting a speculative premium. While revenue growth remains positive at 22.2%, the catastrophic collapse in earnings growth (-82.40% YoY) and a bearish technical trend (0/100) outweigh the analyst target of $7.00.

Strengths
Very low leverage with a Debt/Equity ratio of 0.10
Excellent short-term liquidity (Current Ratio 4.06)
Strong Gross Margins at 61.87%
Risks
Severe earnings contraction (-82.40% YoY)
Significant overvaluation relative to Graham and Intrinsic value models
Razor-thin operating margins (0.38%) indicating high overhead

Compare Another Pair

LLY vs NEPH: Head-to-Head Comparison

This page compares Eli Lilly and Company (LLY) and Nephros, Inc. (NEPH) 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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