Shire Viropharma (NASDAQ: VPHM) and Eli Lilly and (NYSE:LLY) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Dividends

Eli Lilly and pays an annual dividend of $2.08 per share and has a dividend yield of 2.5%. Shire Viropharma does not pay a dividend. Eli Lilly and pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eli Lilly and has increased its dividend for 2 consecutive years.

Profitability

This table compares Shire Viropharma and Eli Lilly and’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shire Viropharma N/A N/A N/A
Eli Lilly and 11.12% 28.71% 10.74%

Valuation and Earnings

This table compares Shire Viropharma and Eli Lilly and’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Shire Viropharma N/A N/A N/A N/A N/A
Eli Lilly and $22.00 billion 3.95 $5.99 billion $2.31 35.69

Eli Lilly and has higher revenue and earnings than Shire Viropharma.

Institutional & Insider Ownership

75.8% of Eli Lilly and shares are owned by institutional investors. 0.2% of Eli Lilly and shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Shire Viropharma and Eli Lilly and, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shire Viropharma 0 0 0 0 N/A
Eli Lilly and 1 6 11 0 2.56

Eli Lilly and has a consensus target price of $89.18, suggesting a potential upside of 8.17%. Given Eli Lilly and’s higher possible upside, analysts clearly believe Eli Lilly and is more favorable than Shire Viropharma.

Summary

Eli Lilly and beats Shire Viropharma on 10 of the 11 factors compared between the two stocks.

Shire Viropharma Company Profile

ViroPharma Incorporated (ViroPharma) is biotechnology company. The Company is engaged in the development and commercialization of solutions for physician specialists to address unmet medical needs of patients living with diseases that have few if any clinical therapeutic options including therapeutics for rare and orphan diseases. Its product development portfolio is focused on four programs: inryze (C1 esterase inhibitor [human]) for management of hereditary angioedema, maribavir for cytomegalovirus (CMV) infection, VP 20621 for the management of C. difficile-associated diarrhea (CDAD) and VP20629, which the Company expects to develop for the treatment of Friedreich’s Ataxia. Its product development portfolio is focused on: C1 esterase inhibitor [human], maribavir for cytomegalovirus (CMV) infection, VP20621 (prevention of recurrent CDAD) and VP20629 (treatment of Friedreich’s Ataxia). On January 23, 2014, Shire Plc completed tender offer for 79.5% of ViroPharma Inc.

Eli Lilly and Company Profile

Eli Lilly and Company is engaged in drug manufacturing business. The Company discovers, develops, manufactures and markets products in two segments: human pharmaceutical products and animal health products. The Company’s human pharmaceutical business segment sells medicines, which are discovered or developed by its scientists. Its animal health business segment operates through the Company’s Elanco division, which develops, manufactures and markets products for both food animals and companion animals. The Company’s human pharmaceutical products include endocrinology products, neuroscience products, oncology products, immunology products and cardiovascular products. The Company’s animal health products segment includes products for food animals and products for companion animals. As of December 31, 2016, the Company manufactured and distributed its products through facilities in the United States, Puerto Rico and 14 other countries.

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