WallStSmart

Abbott Laboratories (ABT)vsEli Lilly and Company (LLY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 79% more annual revenue ($86.46B vs $48.23B). LLY leads profitability with a 31.9% profit margin vs 9.8%. LLY appears more attractively valued with a PEG of 1.36. LLY earns a higher WallStSmart Score of 74/100 (B).

ABT

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.71

LLY

Strong Buy

74

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABTSignificantly Overvalued (-38.8%)

Margin of Safety

-38.8%

Fair Value

$76.51

Current Price

$109.96

$33.45 premium

UndervaluedFair: $76.51Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABT2 strengths · Avg: 8.5/10
Market CapQuality
$184.98B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.09B8/10

Generating 2.1B in free cash flow

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$1.26T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
53.7%10/10

Strong operational efficiency at 53.7%

Revenue GrowthGrowth
38.6%10/10

Revenue surging 38.6% year-over-year

Free Cash FlowQuality
$7.76B8/10

Generating 7.8B in free cash flow

Areas to Watch

ABT3 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

P/E RatioValuation
39.5x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-43.7%2/10

Earnings declined 43.7%

LLY3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.623/10

Elevated debt levels

P/E RatioValuation
46.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
30.0x2/10

Trading at 30.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ABT

The strongest argument for ABT centers on Market Cap, Free Cash Flow. Revenue growth of 14.5% demonstrates continued momentum.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.9% and operating margin at 53.7%. Revenue growth of 38.6% demonstrates continued momentum.

Bear Case : ABT

The primary concerns for ABT are PEG Ratio, P/E Ratio, EPS Growth.

Bear Case : LLY

The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 46.0x leaves little room for execution misses. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

ABT profiles as a value stock while LLY is a growth play — different risk/reward profiles.

ABT carries more volatility with a beta of 0.58 — expect wider price swings.

LLY is growing revenue faster at 38.6% — sustainability is the question.

LLY generates stronger free cash flow (7.8B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (74/100 vs 52/100), backed by strong 31.9% margins and 38.6% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Abbott Laboratories

HEALTHCARE · MEDICAL DEVICES · USA

Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known drugs; today, it sells medical devices, diagnostics, branded generic medicines and nutritional products. It split off its research-based pharmaceuticals business into AbbVie in 2013.

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Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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