WallStSmart

Emergent Biosolutions Inc (EBS)vsEli Lilly and Company (LLY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 8674% more annual revenue ($65.18B vs $742.90M). LLY leads profitability with a 31.7% profit margin vs 7.1%. EBS appears more attractively valued with a PEG of 0.38. LLY earns a higher WallStSmart Score of 78/100 (B+).

EBS

Buy

55

out of 100

Grade: C

Growth: 2.0Profit: 4.5Value: 10.0Quality: 6.0
Piotroski: 4/9Altman Z: 1.28

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

EBSUndervalued (+74.3%)

Margin of Safety

+74.3%

Fair Value

$42.90

Current Price

$8.23

$34.67 discount

UndervaluedFair: $42.90Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EBS3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

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

EBS4 concerns · Avg: 2.8/10
Market CapQuality
$414.70M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

Debt/EquityHealth
1.143/10

Elevated debt levels

Revenue GrowthGrowth
-23.6%2/10

Revenue declined 23.6%

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 : EBS

The strongest argument for EBS centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.38 suggests the stock is reasonably priced for its growth.

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 : EBS

The primary concerns for EBS are Market Cap, Profit Margin, Debt/Equity.

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

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

EBS carries more volatility with a beta of 2.36 — 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 55/100), backed by strong 31.7% margins and 42.6% revenue growth. EBS offers better value entry with a 74.3% margin of safety. 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.

Emergent Biosolutions Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Emergent BioSolutions Inc., a life sciences company, focuses on providing preparedness and response products and solutions for civilian and military populations that address accidental, deliberate, and naturally occurring public health threats (PHT). The company is headquartered in Gaithersburg, Maryland.

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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