WallStSmart

Eli Lilly and Company (LLY)vsSelect Medical Holdings (SEM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 1343% more annual revenue ($79.67B vs $5.52B). LLY leads profitability with a 33.5% profit margin vs 2.4%. LLY appears more attractively valued with a PEG of 1.11. LLY earns a higher WallStSmart Score of 76/100 (B+).

LLY

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.06

SEM

Buy

50

out of 100

Grade: C-

Growth: 3.3Profit: 5.0Value: 5.7Quality: 4.5
Piotroski: 3/9Altman Z: 1.68

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$994.92B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
54.2%10/10

Strong operational efficiency at 54.2%

Revenue GrowthGrowth
47.7%10/10

Revenue surging 47.7% year-over-year

EPS GrowthGrowth
26.2%8/10

Earnings expanding 26.2% YoY

SEM2 strengths · Avg: 9.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Areas to Watch

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.623/10

Elevated debt levels

Price/BookValuation
29.4x2/10

Trading at 29.4x book value

SEM4 concerns · Avg: 3.5/10
PEG RatioValuation
2.264/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull 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 : SEM

The strongest argument for SEM centers on Price/Book, P/E Ratio.

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 : SEM

The primary concerns for SEM are PEG Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 1.70 is elevated, increasing financial risk. Thin 2.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

SEM carries more volatility with a beta of 0.79 — 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 50/100), backed by strong 33.5% margins and 47.7% 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.

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Select Medical Holdings

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. The company is headquartered in Mechanicsburg, Pennsylvania.

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