Does Eli Lilly Stock Lead the Pack?
Eli Lilly’s (LLY) stock has significantly outperformed over the past year. However, how does it truly stack up against peers like Merck (MRK) and Pfizer (PFE) in the evolving pharmaceutical landscape? While LLY boasts exceptional LTM revenue growth of 36.8% and a robust operating margin of 43.0%, its premium valuation with a PE ratio of 67.88 and a negative free cash flow margin raise questions about sustained upside compared to more established, value-focused rivals.
- LLY’s 43.0% operating margin, highest among peers, highlights efficient operations and pricing power from its innovative drug portfolio.
- LLY’s 36.8% revenue growth, outpacing peers, stems from surging demand for its GLP-1 drugs, Mounjaro and Zepbound.
- LLY’s 39.5% gain and 67.9 P/E reflect investor confidence in its GLP-1 franchise and robust pipeline, signaling strong future growth.
Here’s how Eli Lilly stacks up across size, valuation, and profitability versus key peers.
| LLY | MRK | PFE | BMY | BDX | |
|---|---|---|---|---|---|
| Market Cap ($ Bil) | 936.8 | 237.0 | 138.7 | 93.5 | 54.4 |
| Revenue ($ Bil) | 53.3 | 64.2 | 62.8 | 48.0 | 21.4 |
| PE Ratio | 67.9 | 12.4 | 14.1 | 15.5 | 34.3 |
| LTM Revenue Growth | 36.8% | 1.7% | 3.9% | 1.3% | 7.9% |
| LTM Operating Margin | 43.0% | 34.9% | 24.6% | 23.8% | 13.8% |
| LTM FCF Margin | -0.1% | 20.3% | 16.5% | 31.9% | 11.9% |
| 12M Market Return | 39.5% | 1.1% | 4.9% | -16.7% | -13.0% |
For more details on Eli Lilly, read Buy or Sell LLY Stock. Below we compare LLY’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
- What Could Rocket Alphabet Stock to New Heights
- The Hidden Dangers Facing Micron Technology Stock
- Cash Machine Trading Cheap – Docusign Stock Set to Run?
- Micron Technology Stock On A Winning Streak: Time To Get In Or Book Profits?
- Is Microsoft Stock Poised for a Rally?
- With Strong Cash Flow, Constellation Brands Stock Poised to Rise?
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| LLY | 36.8% | 32.0% | 19.6% | 0.8% |
| MRK | 1.7% | 6.7% | 1.4% | 21.7% |
| PFE | 3.9% | 6.8% | -41.1% | 24.5% |
| BMY | 1.3% | 7.3% | -2.5% | -0.5% |
| BDX | 7.9% | 4.2% | 2.7% | -1.4% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| LLY | 43.0% | 38.9% | 31.6% | 30.3% |
| MRK | 34.9% | 31.5% | 4.9% | 30.8% |
| PFE | 24.6% | 23.3% | 7.1% | 36.7% |
| BMY | 23.8% | 12.2% | 18.2% | 19.7% |
| BDX | 13.8% | 14.2% | 12.5% | 13.1% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| LLY | 67.9 | 65.7 | 100.1 | 52.8 |
| MRK | 12.4 | 14.7 | 757.8 | 19.3 |
| PFE | 14.1 | 18.7 | 76.7 | 9.2 |
| BMY | 15.5 | -12.8 | 13.2 | 24.2 |
| BDX | 34.3 | 38.6 | 47.0 | 40.7 |
Still not sure about LLY stock? Consider portfolio approach.
Why Stock Pickers Win More With Multi Asset Portfolios
Single markets are unpredictable but different assets react differently. A multi asset portfolio cuts downside shocks while keeping upside on the table.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices