WallStSmart

Eli Lilly and Company (LLY)vsTeva Pharma Industries Ltd ADR (TEVA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 278% more annual revenue ($65.18B vs $17.26B). LLY leads profitability with a 31.7% profit margin vs 8.2%. LLY appears more attractively valued with a PEG of 0.98. LLY earns a higher WallStSmart Score of 80/100 (A-).

LLY

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 9.3Quality: 8.0
Piotroski: 6/9Altman Z: 2.06

TEVA

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 10.0Quality: 4.8
Piotroski: 6/9Altman Z: 0.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LLYUndervalued (+15.9%)

Margin of Safety

+15.9%

Fair Value

$1073.59

Current Price

$903.02

$170.57 discount

UndervaluedFair: $1073.59Overvalued
TEVAUndervalued (+39.4%)

Margin of Safety

+39.4%

Fair Value

$56.63

Current Price

$29.14

$27.49 discount

UndervaluedFair: $56.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$814.96B10/10

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

TEVA4 strengths · Avg: 8.3/10
Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

Operating MarginProfitability
27.3%8/10

Strong operational efficiency at 27.3%

EPS GrowthGrowth
40.0%8/10

Earnings expanding 40.0% YoY

Free Cash FlowQuality
$1.02B8/10

Generating 1.0B in free cash flow

Areas to Watch

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
39.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.603/10

Elevated debt levels

Price/BookValuation
30.4x2/10

Trading at 30.4x book value

TEVA1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.282/10

Distress zone — elevated risk

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 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.

Bull Case : TEVA

The strongest argument for TEVA centers on Return on Equity, Operating Margin, EPS Growth. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.43 suggests the stock is reasonably priced for its growth.

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 : TEVA

The primary concerns for TEVA are Altman Z-Score.

Key Dynamics to Monitor

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

TEVA carries more volatility with a beta of 0.72 — expect wider price swings.

LLY is growing revenue faster at 42.6% — sustainability is the question.

TEVA generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (80/100 vs 73/100), backed by strong 31.7% margins and 42.6% revenue growth. TEVA offers better value entry with a 39.4% margin of safety. Both earn "Exceptional Buy" and "Strong 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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Teva Pharma Industries Ltd ADR

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic drugs, specialty drugs, and biopharmaceuticals in North America, Europe, and internationally. The company is headquartered in Petach Tikva, Israel.

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