WallStSmart

Fresenius Medical Care Corporation (FMS)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 273% more annual revenue ($72.25B vs $19.36B). LLY leads profitability with a 35.0% profit margin vs 4.9%. FMS appears more attractively valued with a PEG of 0.84. LLY earns a higher WallStSmart Score of 76/100 (B+).

FMS

Buy

50

out of 100

Grade: C-

Growth: 2.7Profit: 5.0Value: 8.7Quality: 6.0
Piotroski: 6/9Altman Z: 1.96

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

FMSUndervalued (+68.9%)

Margin of Safety

+68.9%

Fair Value

$77.34

Current Price

$23.39

$53.95 discount

UndervaluedFair: $77.34Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FMS3 strengths · Avg: 8.7/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

PEG RatioValuation
0.848/10

Growing faster than its price suggests

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

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

FMS4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Return on EquityProfitability
7.1%3/10

ROE of 7.1% — below average capital efficiency

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Revenue GrowthGrowth
-5.5%2/10

Revenue declined 5.5%

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 : FMS

The strongest argument for FMS centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.84 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 35.0% and operating margin at 49.4%. Revenue growth of 55.5% demonstrates continued momentum.

Bear Case : FMS

The primary concerns for FMS are Altman Z-Score, Return on Equity, Profit Margin. Thin 4.9% margins leave little buffer for downturns.

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

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

FMS carries more volatility with a beta of 0.81 — 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.

Bottom Line

LLY scores higher overall (76/100 vs 50/100), backed by strong 35.0% margins and 55.5% revenue growth. FMS offers better value entry with a 68.9% 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.

Fresenius Medical Care Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Fresenius Medical Care AG & Co. KGaA provides dialysis care and related dialysis care services in Germany, North America and internationally. The company is headquartered in Bad Homburg, Germany.

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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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