WallStSmart

Edwards Lifesciences Corp (EW)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 1046% more annual revenue ($72.25B vs $6.30B). LLY leads profitability with a 35.0% profit margin vs 17.4%. LLY appears more attractively valued with a PEG of 1.52. LLY earns a higher WallStSmart Score of 76/100 (B+).

EW

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 6.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.48

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

EWUndervalued (+68.6%)

Margin of Safety

+68.6%

Fair Value

$252.36

Current Price

$85.88

$166.48 discount

UndervaluedFair: $252.36Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EW4 strengths · Avg: 9.5/10
Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.4810/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$1.01T10/10

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

EW4 concerns · Avg: 2.8/10
PEG RatioValuation
2.054/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
46.0x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-21.10M2/10

Negative free cash flow — burning cash

LLY4 concerns · Avg: 2.8/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Debt/EquityHealth
1.393/10

Elevated debt levels

P/E RatioValuation
40.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
31.6x2/10

Trading at 31.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : EW

The strongest argument for EW centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 17.4% and operating margin at 31.2%. Revenue growth of 16.7% 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 : EW

The primary concerns for EW are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 46.0x leaves little room for execution misses.

Bear Case : LLY

The primary concerns for LLY are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 40.2x leaves little room for execution misses.

Key Dynamics to Monitor

EW carries more volatility with a beta of 0.87 — 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 MEDICAL DEVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LLY scores higher overall (76/100 vs 61/100), backed by strong 35.0% margins and 55.5% revenue growth. EW offers better value entry with a 68.6% 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.

Edwards Lifesciences Corp

HEALTHCARE · MEDICAL DEVICES · USA

Edwards Lifesciences is an American medical technology company headquartered in Irvine, California, specializing in artificial heart valves and hemodynamic monitoring.

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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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