LLY vs MRK
Eli Lilly and Company Common Stock vs Merck & Company Inc. Common Stock (new). Scores ACCE, valorisation, rentabilité et croissance côte à côte.
$LLY is the clear winner here, though neither stock looks cheap on a fair-value basis.
Growth vs. Yield
$LLY posted 47.7% revenue growth and 26.2% earnings growth year-over-year, with a net margin of 33.5% and a Quality score of 86/100. Its ACCE Growth score of 92 reflects a business genuinely accelerating, not coasting. The analyst consensus target of $1,315.04 implies modest upside from the current $1,174.61.
$MRK tells a different story. Revenue grew just 5.1% and earnings fell 19.3% year-over-year. The trailing P/E of 117.7 is punishing for a company with a 4.8% net margin and a Quality score of 50. The analyst target of $148.73 sits almost exactly at the current price of $148.35, meaning the Street sees virtually no runway from here.
The Valuation Caveat
Both stocks trade well above their 6-model fair values: $LLY at -61.5% implied downside, $MRK at -47.5%. $MRK's 2.2% dividend yield and lower debt-to-equity (0.94 vs. $LLY's 1.60) offer some cushion, but not enough to offset deteriorating earnings.
$LLY wins on growth, margins, quality, and analyst conviction. The premium is steep, but it is at least backed by the numbers.