WallStSmart

Insmed Inc (INSM)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 10648% more annual revenue ($65.18B vs $606.42M). LLY leads profitability with a 31.7% profit margin vs -210.5%. LLY appears more attractively valued with a PEG of 0.98. LLY earns a higher WallStSmart Score of 80/100 (A-).

INSM

Hold

39

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.3Quality: 6.3
Piotroski: 6/9Altman Z: -3.77

LLY

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 6.7Quality: 6.5
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for INSM.

LLYUndervalued (+18.1%)

Margin of Safety

+18.1%

Fair Value

$1072.66

Current Price

$878.24

$194.42 discount

UndervaluedFair: $1072.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INSM1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
152.6%10/10

Revenue surging 152.6% year-over-year

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$786.04B10/10

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

INSM4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
42.1x2/10

Trading at 42.1x book value

Return on EquityProfitability
-249.3%2/10

ROE of -249.3% — below average capital efficiency

Free Cash FlowQuality
$-294.19M2/10

Negative free cash flow — burning cash

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.603/10

Elevated debt levels

Price/BookValuation
29.6x2/10

Trading at 29.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : INSM

The strongest argument for INSM centers on Revenue Growth. Revenue growth of 152.6% demonstrates continued momentum. PEG of 1.09 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 : INSM

The primary concerns for INSM are EPS Growth, Price/Book, Return on 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

INSM profiles as a hypergrowth stock while LLY is a growth play — different risk/reward profiles.

INSM carries more volatility with a beta of 1.17 — expect wider price swings.

INSM is growing revenue faster at 152.6% — sustainability is the question.

LLY generates stronger free cash flow (678M), providing more financial flexibility.

Bottom Line

LLY scores higher overall (80/100 vs 39/100), backed by strong 31.7% margins and 42.6% revenue growth. Both earn "Exceptional 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.

Insmed Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Insmed Incorporated, a biopharmaceutical company, develops and markets therapies for patients with rare and serious diseases. The company is headquartered in Bridgewater, New Jersey.

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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