Eli Lilly and Company (LLY)vsR1 RCM Inc (RCM)
LLY
Eli Lilly and Company
$878.24
+0.96%
HEALTHCARE · Cap: $786.04B
RCM
R1 RCM Inc
$14.31
0.00%
HEALTHCARE · Cap: $6.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 2546% more annual revenue ($65.18B vs $2.46B). LLY leads profitability with a 31.7% profit margin vs -2.5%. LLY appears more attractively valued with a PEG of 0.98. LLY earns a higher WallStSmart Score of 80/100 (A-).
LLY
Exceptional Buy80
out of 100
Grade: A-
RCM
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+18.1%
Fair Value
$1072.66
Current Price
$878.24
$194.42 discount
Intrinsic value data unavailable for RCM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.9%
Revenue surging 42.6% year-over-year
Earnings expanding 51.4% YoY
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 29.6x book value
Expensive relative to growth rate
Operating margin of 3.8%
ROE of -2.2% — below average capital efficiency
Earnings declined 99.3%
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 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.
Bull Case : RCM
The strongest argument for RCM centers on Price/Book. Revenue growth of 14.7% demonstrates continued momentum.
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.
Bear Case : RCM
The primary concerns for RCM are PEG Ratio, Operating Margin, Return on Equity.
Key Dynamics to Monitor
LLY profiles as a growth stock while RCM is a turnaround play — different risk/reward profiles.
RCM carries more volatility with a beta of 0.84 — expect wider price swings.
LLY is growing revenue faster at 42.6% — 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.
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 →R1 RCM Inc
HEALTHCARE · HEALTH INFORMATION SERVICES · USA
R1 RCM Inc (RCM) is a leading provider of technology-enabled revenue cycle management services, specializing in optimizing the financial performance of healthcare organizations. By leveraging advanced analytics and industry expertise, R1 RCM delivers comprehensive solutions that streamline patient billing processes and enhance operational efficiencies across a diverse portfolio of clients, including hospitals and outpatient facilities. The company's innovative approach not only improves revenue capture but also elevates the patient experience, positioning R1 RCM as a key player in the evolving healthcare landscape. With a robust growth strategy focused on expanding its service offerings and market reach, R1 RCM is poised to capitalize on the increasing demand for effective revenue cycle solutions in the healthcare sector.
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