Head-To-Head Analysis: Eli Lilly and Company (NYSE:LLY) and Daiichi Sankyo (OTCMKTS:DSNKY)

Daiichi Sankyo (OTCMKTS:DSNKY) and Eli Lilly and Company (NYSE:LLY) are both large-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Valuation & Earnings

This table compares Daiichi Sankyo and Eli Lilly and Company”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daiichi Sankyo	$14.10 billion	2.19	$1.72 billion	$0.86	19.32
Eli Lilly and Company	$79.67 billion	13.72	$20.64 billion	$29.80	38.96

Eli Lilly and Company has higher revenue and earnings than Daiichi Sankyo. Daiichi Sankyo is trading at a lower price-to-earnings ratio than Eli Lilly and Company, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

82.5% of Eli Lilly and Company shares are held by institutional investors. 0.1% of Eli Lilly and Company shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Daiichi Sankyo and Eli Lilly and Company, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daiichi Sankyo	0	2	0	0	2.00
Eli Lilly and Company	1	3	25	1	2.87

Eli Lilly and Company has a consensus target price of $1,313.43, indicating a potential upside of 13.14%. Given Eli Lilly and Company’s stronger consensus rating and higher possible upside, analysts clearly believe Eli Lilly and Company is more favorable than Daiichi Sankyo.

Dividends

Daiichi Sankyo pays an annual dividend of $0.34 per share and has a dividend yield of 2.0%. Eli Lilly and Company pays an annual dividend of $6.92 per share and has a dividend yield of 0.6%. Daiichi Sankyo pays out 39.5% of its earnings in the form of a dividend. Eli Lilly and Company pays out 23.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eli Lilly and Company has raised its dividend for 11 consecutive years.

Profitability

This table compares Daiichi Sankyo and Eli Lilly and Company’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daiichi Sankyo	10.92%	14.35%	6.10%
Eli Lilly and Company	33.53%	97.83%	23.23%

Risk and Volatility

Daiichi Sankyo has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500. Comparatively, Eli Lilly and Company has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Summary

Eli Lilly and Company beats Daiichi Sankyo on 17 of the 18 factors compared between the two stocks.

About Daiichi Sankyo

Daiichi Sankyo Company, Limited manufactures, markets, and sells pharmaceutical products worldwide. The company offers Enhertu, a HER2 directed antibody drug conjugate; Turalio, a CSF-1R inhibitor; Vanflyta, a FLT3 inhibitor for the treatment of adult patients with relapsed/refractory FLT3-ITD acute myeloid leukemia; ferric carboxymaltose injection for treating anaemia; and Injectafer for the treatment for iron deficiency anaemia. It also provides olmesartan medoxomil antihypertensive agents; NILEMDO, an oral treatment to help in lowering cholesterol; and Nustendi, a fixed-dose combination tablet of bempedoic acid and ezetimibe for reducing cholesterol. In addition, the company offers Canalia for the treatment of type 2 diabetes mellitus; Emgalty for the treatment of migraine attacks; Pralia for the treatment of anti-osteoporosis/inhibitor of the progression of bone erosion associated with rheumatoid arthritis; Ranmark for the treatment of bone complications caused by bone metastasis from tumors; Tarlige for treating pain; Tenelia for the treatment of Type 2 diabetes mellitus; Venofer for the treatment of iron deficiency anemia; and Vimpat, an anti-epileptic agent. Further, it provides vaccines for influenza, measles/rubella infection, and mumps. The company has a development and commercialization agreement with Merck to jointly develop and commercialize Daiichi Sankyo's DXd antibody drug conjugate (ADC) candidates The company was founded in 1899 and is headquartered in Tokyo, Japan.

About Eli Lilly and Company

Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. The company offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity. It also provides oncology products, including Alimta, Cyramza, Erbitux, Jaypirca, Retevmo, Tyvyt, and Verzenio. In addition, the company offers Olumiant for rheumatoid arthritis, atopic dermatitis, severe alopecia areata, and COVID-19; Taltz for plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial spondylarthritis; Omvoh for ulcerative colitis; Cymbalta for depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; Ebglyss for severe atopic dermatitis; and Emgality for migraine prevention and episodic cluster headache. Further, it provides Cialis for erectile dysfunction and benign prostatic hyperplasia; and Forteo for osteoporosis. It has collaborations with Incyte Corporation; Boehringer Ingelheim Pharmaceuticals, Inc.; F. Hoffmann-La Roche Ltd and Genentech, Inc.; Biologics, Inc., AbCellera Biologics Inc.; and Chugai Pharmaceutical Co., Ltd. The company was founded in 1876 and is headquartered in Indianapolis, Indiana.