WallStSmart

Avanos Medical Inc (AVNS)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 9195% more annual revenue ($65.18B vs $701.20M). LLY leads profitability with a 31.7% profit margin vs -10.4%. LLY earns a higher WallStSmart Score of 78/100 (B+).

AVNS

Avoid

34

out of 100

Grade: F

Growth: 3.3Profit: 3.0Value: 6.7Quality: 5.0

LLY

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.0Quality: 6.5
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVNSUndervalued (+76.5%)

Margin of Safety

+76.5%

Fair Value

$64.45

Current Price

$24.64

$39.81 discount

UndervaluedFair: $64.45Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVNS1 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$760.43B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
101.2%10/10

Every $100 of equity generates 101 in profit

Profit MarginProfitability
31.7%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
44.9%10/10

Strong operational efficiency at 44.9%

Revenue GrowthGrowth
42.6%10/10

Revenue surging 42.6% year-over-year

EPS GrowthGrowth
51.4%10/10

Earnings expanding 51.4% YoY

Areas to Watch

AVNS4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.7%4/10

0.7% revenue growth

Market CapQuality
$1.15B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.0%3/10

Operating margin of 2.0%

Return on EquityProfitability
-9.1%2/10

ROE of -9.1% — below average capital efficiency

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.0x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.603/10

Elevated debt levels

Price/BookValuation
31.5x2/10

Trading at 31.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AVNS

The strongest argument for AVNS centers on Price/Book.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.

Bear Case : AVNS

The primary concerns for AVNS are Revenue Growth, Market Cap, Operating Margin.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Key Dynamics to Monitor

AVNS profiles as a turnaround stock while LLY is a growth play — different risk/reward profiles.

AVNS carries more volatility with a beta of 1.05 — expect wider price swings.

LLY is growing revenue faster at 42.6% — sustainability is the question.

LLY generates stronger free cash flow (678M), providing more financial flexibility.

Bottom Line

LLY scores higher overall (78/100 vs 34/100), backed by strong 31.7% margins and 42.6% revenue growth. AVNS offers better value entry with a 76.5% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Avanos Medical Inc

HEALTHCARE · MEDICAL DEVICES · USA

Avanos Medical, Inc. is a medical technology company focused on providing medical device solutions to improve the quality of life for patients in North America, Europe, the Middle East, Africa, Asia Pacific, and Latin America. The company is headquartered in Alpharetta, Georgia.

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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