Eli Lilly and Company (LLY)vsMcKesson Corporation (MCK)
LLY
Eli Lilly and Company
$1,208.12
+7.13%
HEALTHCARE · Cap: $1.08T
MCK
McKesson Corporation
$763.51
+2.47%
HEALTHCARE · Cap: $89.39B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 458% more annual revenue ($403.43B vs $72.25B). LLY leads profitability with a 35.0% profit margin vs 1.2%. LLY appears more attractively valued with a PEG of 1.46. LLY earns a higher WallStSmart Score of 78/100 (B+).
LLY
Strong Buy78
out of 100
Grade: B+
MCK
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LLY.
Margin of Safety
-65.1%
Fair Value
$577.34
Current Price
$763.51
$186.17 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 81 in profit
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 49.4%
Revenue surging 55.5% year-over-year
Earnings expanding 169.9% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 37.2% YoY
Generating 3.3B in free cash flow
Areas to Watch
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 34.6x book value
ROE of 0.0% — below average capital efficiency
1.2% margin — thin
Operating margin of 2.2%
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 35.0% and operating margin at 49.4%. Revenue growth of 55.5% demonstrates continued momentum.
Bull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap. PEG of 1.49 suggests the stock is reasonably priced for its growth.
Bear Case : LLY
The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 42.9x leaves little room for execution misses.
Bear Case : MCK
The primary concerns for MCK are Return on Equity, Profit Margin, Operating Margin. Thin 1.2% 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 0.52 — expect wider price swings.
LLY is growing revenue faster at 55.5% — sustainability is the question.
MCK generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
LLY scores higher overall (78/100 vs 55/100), backed by strong 35.0% margins and 55.5% 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.
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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