WallStSmart

Elanco Animal Health (ELAN)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 1487% more annual revenue ($79.67B vs $5.02B). LLY leads profitability with a 33.5% profit margin vs -4.0%. LLY appears more attractively valued with a PEG of 1.11. LLY earns a higher WallStSmart Score of 76/100 (B+).

ELAN

Buy

52

out of 100

Grade: C-

Growth: 6.7Profit: 3.5Value: 3.0Quality: 5.5
Piotroski: 5/9Altman Z: 0.87

LLY

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ELANSignificantly Overvalued (-29.5%)

Margin of Safety

-29.5%

Fair Value

$19.85

Current Price

$23.17

$3.32 premium

UndervaluedFair: $19.85Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ELAN2 strengths · Avg: 9.0/10
EPS GrowthGrowth
440.5%10/10

Earnings expanding 440.5% YoY

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$994.92B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
54.2%10/10

Strong operational efficiency at 54.2%

Revenue GrowthGrowth
47.7%10/10

Revenue surging 47.7% year-over-year

EPS GrowthGrowth
26.2%8/10

Earnings expanding 26.2% YoY

Areas to Watch

ELAN4 concerns · Avg: 1.8/10
PEG RatioValuation
4.042/10

Expensive relative to growth rate

Return on EquityProfitability
-3.0%2/10

ROE of -3.0% — below average capital efficiency

Altman Z-ScoreHealth
0.872/10

Distress zone — elevated risk

Profit MarginProfitability
-4.0%1/10

Currently unprofitable

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.623/10

Elevated debt levels

Price/BookValuation
29.4x2/10

Trading at 29.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ELAN

The strongest argument for ELAN centers on EPS Growth, Price/Book. Revenue growth of 10.2% 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 33.5% and operating margin at 54.2%. Revenue growth of 47.7% demonstrates continued momentum.

Bear Case : ELAN

The primary concerns for ELAN are PEG Ratio, Return on Equity, Altman Z-Score.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

ELAN carries more volatility with a beta of 1.68 — expect wider price swings.

LLY is growing revenue faster at 47.7% — sustainability is the question.

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

Bottom Line

LLY scores higher overall (76/100 vs 52/100), backed by strong 33.5% margins and 47.7% 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.

Elanco Animal Health

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures and markets products for pets and farm animals. The company is headquartered in Greenfield, Indiana.

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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