Eli Lilly and (LLY) & Astrazeneca PLC (AZN) Financial Contrast
Eli Lilly and (NYSE: LLY) and Astrazeneca PLC (NYSE:AZN) are both large-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Volatility and Risk
Eli Lilly and has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Astrazeneca PLC has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
Earnings & Valuation
This table compares Eli Lilly and and Astrazeneca PLC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eli Lilly and||$22.00 billion||4.10||$5.99 billion||$2.31||37.03|
|Astrazeneca PLC||$21.74 billion||3.95||$5.91 billion||$3.05||11.11|
Eli Lilly and has higher revenue and earnings than Astrazeneca PLC. Astrazeneca PLC is trading at a lower price-to-earnings ratio than Eli Lilly and, indicating that it is currently the more affordable of the two stocks.
This table compares Eli Lilly and and Astrazeneca PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eli Lilly and||11.12%||28.71%||10.74%|
This is a breakdown of current ratings for Eli Lilly and and Astrazeneca PLC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eli Lilly and||1||6||11||0||2.56|
Eli Lilly and currently has a consensus price target of $89.18, suggesting a potential upside of 4.25%. Astrazeneca PLC has a consensus price target of $36.40, suggesting a potential upside of 7.42%. Given Astrazeneca PLC’s higher probable upside, analysts clearly believe Astrazeneca PLC is more favorable than Eli Lilly and.
Eli Lilly and pays an annual dividend of $2.08 per share and has a dividend yield of 2.4%. Astrazeneca PLC pays an annual dividend of $1.37 per share and has a dividend yield of 4.0%. 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. Astrazeneca PLC pays out 44.9% of its earnings in the form of a dividend. Astrazeneca PLC has increased its dividend for 2 consecutive years. Astrazeneca PLC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
75.7% of Eli Lilly and shares are owned by institutional investors. Comparatively, 14.2% of Astrazeneca PLC shares are owned by institutional investors. 0.2% of Eli Lilly and shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Astrazeneca PLC beats Eli Lilly and on 9 of the 17 factors compared between the two stocks.
About Eli Lilly and
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.
About Astrazeneca PLC
AstraZeneca PLC (AstraZeneca) is a biopharmaceutical company. The Company focuses on discovery and development of products, which are then manufactured, marketed and sold. The Company focuses on three main therapy areas: Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory, while selectively pursuing therapies in Autoimmunity, Infection and Neuroscience. In CVMD, it is expanding its portfolio into the cardiovascular-renal area with late-stage assets, such as ZS-9 and roxadustat, as well as investing to explore the benefits of its SGLT2 and GLP-1 franchises in chronic kidney disease (CKD) and heart failure (HF). The Company has approximately 40 projects in Phase I, including 29 new molecular entities (NMEs), and 11 oncology combination projects. It has approximately 40 projects in Phase II, including 25 NMEs; four significant additional indications for projects that have reached phase II, and seven oncology combination projects.
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