WallStSmart

Castle Biosciences Inc (CSTL)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 20122% more annual revenue ($72.25B vs $357.28M). LLY leads profitability with a 35.0% profit margin vs -5.4%. LLY earns a higher WallStSmart Score of 76/100 (B+).

CSTL

Hold

37

out of 100

Grade: F

Growth: 6.7Profit: 2.0Value: 6.7Quality: 8.5
Piotroski: 3/9Altman Z: 3.11

LLY

Strong Buy

76

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 4.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CSTLUndervalued (+59.2%)

Margin of Safety

+59.2%

Fair Value

$79.18

Current Price

$32.03

$47.15 discount

UndervaluedFair: $79.18Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSTL4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.1%8/10

Revenue surging 20.1% year-over-year

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$1.02T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
81.0%10/10

Every $100 of equity generates 81 in profit

Profit MarginProfitability
35.0%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
49.4%10/10

Strong operational efficiency at 49.4%

Revenue GrowthGrowth
55.5%10/10

Revenue surging 55.5% year-over-year

EPS GrowthGrowth
169.9%10/10

Earnings expanding 169.9% YoY

Areas to Watch

CSTL4 concerns · Avg: 2.5/10
Market CapQuality
$928.40M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-2.8%2/10

ROE of -2.8% — below average capital efficiency

EPS GrowthGrowth
-51.6%2/10

Earnings declined 51.6%

LLY4 concerns · Avg: 3.3/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

P/E RatioValuation
39.6x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.393/10

Elevated debt levels

Price/BookValuation
34.0x2/10

Trading at 34.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CSTL

The strongest argument for CSTL centers on Debt/Equity, Altman Z-Score, Price/Book. Revenue growth of 20.1% 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 35.0% and operating margin at 49.4%. Revenue growth of 55.5% demonstrates continued momentum.

Bear Case : CSTL

The primary concerns for CSTL are Market Cap, Piotroski F-Score, Return on Equity.

Bear Case : LLY

The primary concerns for LLY are PEG Ratio, P/E Ratio, Debt/Equity.

Key Dynamics to Monitor

CSTL carries more volatility with a beta of 0.97 — expect wider price swings.

LLY is growing revenue faster at 55.5% — sustainability is the question.

LLY generates stronger free cash flow (3.0B), providing more financial flexibility.

Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LLY scores higher overall (76/100 vs 37/100), backed by strong 35.0% margins and 55.5% revenue growth. CSTL offers better value entry with a 59.2% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Castle Biosciences Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Castle Biosciences Inc. is a pioneering diagnostics firm that enhances patient care through advanced gene-expression profiling tests, particularly within the skin cancer sector, exemplified by its flagship product, DecisionDx®-Melanoma. This innovative test offers essential insights for risk stratification, enabling oncologists to make informed treatment decisions in managing melanoma. With a strong focus on precision medicine, coupled with an extensive research and development strategy, Castle Biosciences is poised for growth as it seeks to expand its offerings and meet critical clinical demands. By addressing the complexities inherent in oncology, the company not only aims to improve patient outcomes but also to generate substantial value for its investors.

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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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