Eli Lilly and Company (LLY)vsMcKesson Corporation (MCK)
LLY
Eli Lilly and Company
$1,115.70
-0.65%
HEALTHCARE · Cap: $994.92B
MCK
McKesson Corporation
$881.51
+0.07%
HEALTHCARE · Cap: $102.78B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 416% more annual revenue ($410.98B vs $79.67B). LLY leads profitability with a 33.5% profit margin vs 1.1%. LLY appears more attractively valued with a PEG of 1.11. LLY earns a higher WallStSmart Score of 76/100 (B+).
LLY
Strong Buy76
out of 100
Grade: B+
MCK
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LLY.
Margin of Safety
-60.4%
Fair Value
$594.29
Current Price
$881.51
$287.22 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 79 in profit
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 54.2%
Revenue surging 47.7% year-over-year
Earnings expanding 26.2% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 29.4x book value
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.4%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap.
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.
Bear Case : MCK
The primary concerns for MCK are PEG Ratio, Return on Equity, Profit Margin. Thin 1.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
LLY profiles as a growth stock while MCK is a value play — different risk/reward profiles.
LLY carries more volatility with a beta of 0.50 — 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 43/100), backed by strong 33.5% margins and 47.7% revenue growth. Both earn "Strong 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.
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.
Visit Website →McKesson Corporation
HEALTHCARE · MEDICAL DISTRIBUTION · USA
McKesson Corporation is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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