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LLY vs NVO

LLY
Eli Lilly and Company
NEUTRAL
Price
$851.21
Market Cap
$760.43B
Sector
Healthcare
AI Confidence
85%
NVO
Novo Nordisk A/S
NEUTRAL
Price
$42.22
Market Cap
$187.21B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
LLY
37.03
NVO
11.7
Forward P/E
LLY
20.22
NVO
12.31
P/B Ratio
LLY
28.7
NVO
6.17
P/S Ratio
LLY
11.67
NVO
0.61
EV/EBITDA
LLY
25.15
NVO
1.9

Profitability

Gross Margin
LLY
83.04%
NVO
82.41%
Operating Margin
LLY
44.9%
NVO
44.53%
Profit Margin
LLY
31.67%
NVO
33.14%
ROE
LLY
101.16%
NVO
60.7%
ROA
LLY
19.41%
NVO
17.43%

Growth

Revenue Growth
LLY
42.6%
NVO
-7.6%
Earnings Growth
LLY
51.4%
NVO
-4.7%

Financial Health

Debt/Equity
LLY
1.65
NVO
0.67
Current Ratio
LLY
1.58
NVO
0.8
Quick Ratio
LLY
0.78
NVO
0.54

Dividends

Dividend Yield
LLY
0.73%
NVO
4.27%
Payout Ratio
LLY
26.14%
NVO
50.42%

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
NVO NEUTRAL

NVO presents a dichotomy between elite profitability and deteriorating growth. The Piotroski F-Score of 4/9 indicates stable but non-improving financial health, while the current price of $42.22 trades at a significant premium to both the Graham Number ($23.58) and Intrinsic Value ($25.27). Despite an exceptional ROE of 60.7% and strong margins, the company is facing negative YoY revenue (-7.6%) and earnings growth (-4.7%), resulting in a high PEG ratio of 4.53. The outlook is tempered by a bearish technical trend and liquidity concerns, though supported by a strong dividend profile and analyst 'Buy' ratings.

Strengths
Exceptional Return on Equity (ROE) of 60.70%
Elite Gross Margins at 82.41%
Attractive Dividend Yield of 4.27% with a sustainable 50.42% payout ratio
Risks
Negative YoY Revenue Growth (-7.60%) and Earnings Growth (-4.70%)
Poor liquidity indicated by a Current Ratio of 0.80 and Quick Ratio of 0.54
Significant overvaluation relative to defensive fair value (Graham Number: $23.58)

Compare Another Pair

LLY vs NVO: Head-to-Head Comparison

This page compares Eli Lilly and Company (LLY) and Novo Nordisk A/S (NVO) 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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