Gilead Sciences, Inc. (GILD) vs Eli Lilly and Company (LLY)

Gilead Sciences, 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 $183.2B — 6.1× the size. Gilead Sciences, Inc. has negative trailing earnings, so its P/E is not meaningful; Eli Lilly and Company trades at 39.7×. Eli Lilly and Company grew revenue faster over the last twelve months: 49.6% against 5.52%. Eli Lilly and Company has the higher net margin (33.5% vs −10.6%) and the higher return on invested capital (26.3% vs −4.48%). Both pay a dividend; Gilead Sciences, Inc. yields more (4.27% vs 0.72%). Across the 22 metrics below, Eli Lilly and Company leads on 13 and Gilead Sciences, Inc. on 9.

Valuation

Metric GILD LLY Drug Manufacturers General median
P/E n/m 39.71 24.72
P/S 6.16 13.26 3.35
P/B 15.97 31.17 5.00
Price to free cash flow 14.49 51.79 17.68
EV/EBITDA 804.10 30.84 13.91
EV/Sales 6.92 13.83 3.95
Earnings yield (1.72%) 2.52% 2.92%
Free cash flow yield 6.90% 1.93% 4.42%

Profitability

Metric GILD LLY Drug Manufacturers General median
Gross margin 79.59% 83.40% 72.77%
Operating margin (8.20%) 42.22% 18.90%
Net margin (10.64%) 33.53% 8.27%
Free cash flow margin 42.50% 22.83% 17.25%
Return on equity (20.68%) 102.29% 6.97%
Return on assets (6.17%) 21.97% 2.76%
Return on invested capital (4.48%) 26.33% 6.30%

Growth

Metric GILD LLY Drug Manufacturers General median
Revenue growth (TTM) 5.52% 49.58% 6.79%
EPS growth (last fiscal year) 1,684.21% 95.99% —
Revenue growth, 5-year CAGR 3.58% 21.58% 3.98%
Net income growth, 5-year CAGR 133.35% 27.22% 0.42%

Health

Metric GILD LLY Drug Manufacturers General median
Debt to equity 2.23 1.62 0.63
Current ratio 1.27 1.35 1.32
Net debt to EBITDA 1.35 1.19 1.15

Dividend

Metric GILD LLY Drug Manufacturers General median
Dividend yield 4.27% 0.72% 3.57%
Payout ratio 0.68 0.59 0.53

Size

Metric GILD LLY Drug Manufacturers General median
Market cap 183.22b 1.11t 125.91b

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