AbbVie Inc. (ABBV) vs Eli Lilly and Company (LLY)

AbbVie Inc. and Eli Lilly and Company are both Drug Manufacturers General companies. Eli Lilly and Company is the larger, with a market value of $1.11T against $467.4B — 2.4× the size. Eli Lilly and Company trades at the lower P/E: 39.7× against 74.7×. Eli Lilly and Company grew revenue faster over the last twelve months: 49.6% against 10.4%. Eli Lilly and Company has the higher net margin (33.5% vs 9.74%) and the higher return on invested capital (26.3% vs 18.1%). Both pay a dividend; AbbVie Inc. yields more (3.57% vs 0.72%). Across the 22 metrics below, Eli Lilly and Company leads on 14 and AbbVie Inc. on 8.

Valuation

Metric ABBV LLY Drug Manufacturers General median
P/E 74.67 39.71 24.72
P/S 7.26 13.26 3.35
P/B n/m 31.17 5.00
Price to free cash flow 25.68 51.79 17.68
EV/EBITDA 20.79 30.84 13.91
EV/Sales 8.26 13.83 3.95
Earnings yield 1.34% 2.52% 2.92%
Free cash flow yield 3.89% 1.93% 4.42%

Profitability

Metric ABBV LLY Drug Manufacturers General median
Gross margin 71.48% 83.40% 72.77%
Operating margin 26.20% 42.22% 18.90%
Net margin 9.74% 33.53% 8.27%
Free cash flow margin 28.28% 22.83% 17.25%
Return on equity (208.10%) 102.29% 6.97%
Return on assets 4.61% 21.97% 2.76%
Return on invested capital 18.07% 26.33% 6.30%

Growth

Metric ABBV LLY Drug Manufacturers General median
Revenue growth (TTM) 10.39% 49.58% 6.79%
EPS growth (last fiscal year) (1.26%) 95.99% —
Revenue growth, 5-year CAGR 5.95% 21.58% 3.98%
Net income growth, 5-year CAGR (1.94%) 27.22% 0.42%

Health

Metric ABBV LLY Drug Manufacturers General median
Debt to equity (12.03) 1.62 0.63
Current ratio 0.81 1.35 1.32
Net debt to EBITDA 2.59 1.19 1.15

Dividend

Metric ABBV LLY Drug Manufacturers General median
Dividend yield 3.57% 0.72% 3.57%
Payout ratio 1.19 0.59 0.53

Size

Metric ABBV LLY Drug Manufacturers General median
Market cap 467.37b 1.11t 125.91b

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