LLY vs. NFLX: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at LLY and NFLX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
LLY’s market capitalization stands at 722.87 billion USD, while NFLX’s is 524.05 billion USD, indicating their market valuations are broadly comparable.
NFLX carries a higher beta at 1.59, indicating it’s more sensitive to market moves, while LLY (beta: 0.39) exhibits greater stability.
| Symbol | LLY | NFLX |
|---|---|---|
| Company Name | Eli Lilly and Company | Netflix, Inc. |
| Country | US | US |
| Sector | Healthcare | Communication Services |
| Industry | Drug Manufacturers - General | Entertainment |
| CEO | Mr. David A. Ricks | Mr. Theodore A. Sarandos |
| Price | 762.73 USD | 1,231.41 USD |
| Market Cap | 722.87 billion USD | 524.05 billion USD |
| Beta | 0.39 | 1.59 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 1, 1972 | May 23, 2002 |
| ADR | No | No |
Historical Performance
This chart compares the performance of LLY and NFLX over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Profitability
Return on Equity
LLY
76.92%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 76.92%
- Median
- 30.71%
- Q1
- 10.70%
- Min
- 2.76%
LLY’s Return on Equity of 76.92% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.
NFLX
39.61%
Entertainment Industry
- Max
- 52.68%
- Q3
- 22.74%
- Median
- 4.22%
- Q1
- -9.02%
- Min
- -32.25%
In the upper quartile for the Entertainment industry, NFLX’s Return on Equity of 39.61% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
LLY
25.72%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.87%
- Median
- 10.93%
- Q1
- 8.97%
- Min
- 2.87%
In the upper quartile for the Drug Manufacturers - General industry, LLY’s Return on Invested Capital of 25.72% signifies a highly effective use of its capital to generate profits when compared to its peers.
NFLX
22.23%
Entertainment Industry
- Max
- 18.44%
- Q3
- 7.94%
- Median
- 4.38%
- Q1
- -0.96%
- Min
- -11.28%
NFLX’s Return on Invested Capital of 22.23% is exceptionally high, placing it well beyond the typical range for the Entertainment industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
Net Profit Margin
LLY
22.66%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 22.66%
- Median
- 14.39%
- Q1
- 11.92%
- Min
- 2.18%
LLY’s Net Profit Margin of 22.66% is aligned with the median group of its peers in the Drug Manufacturers - General industry. This indicates its ability to convert revenue into profit is typical for the sector.
NFLX
23.09%
Entertainment Industry
- Max
- 23.09%
- Q3
- 7.10%
- Median
- 3.16%
- Q1
- -7.14%
- Min
- -21.62%
A Net Profit Margin of 23.09% places NFLX in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
LLY
40.70%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.61%
- Median
- 23.17%
- Q1
- 18.55%
- Min
- 16.13%
An Operating Profit Margin of 40.70% places LLY in the upper quartile for the Drug Manufacturers - General industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
NFLX
27.65%
Entertainment Industry
- Max
- 27.65%
- Q3
- 14.60%
- Median
- 7.93%
- Q1
- -1.50%
- Min
- -17.48%
An Operating Profit Margin of 27.65% places NFLX in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | LLY | NFLX |
|---|---|---|
| Return on Equity (TTM) | 76.92% | 39.61% |
| Return on Assets (TTM) | 12.42% | 17.80% |
| Return on Invested Capital (TTM) | 25.72% | 22.23% |
| Net Profit Margin (TTM) | 22.66% | 23.09% |
| Operating Profit Margin (TTM) | 40.70% | 27.65% |
| Gross Profit Margin (TTM) | 81.70% | 46.87% |
Financial Strength
Current Ratio
LLY
1.37
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.41
- Median
- 1.28
- Q1
- 0.90
- Min
- 0.74
LLY’s Current Ratio of 1.37 aligns with the median group of the Drug Manufacturers - General industry, indicating that its short-term liquidity is in line with its sector peers.
NFLX
1.20
Entertainment Industry
- Max
- 2.86
- Q3
- 1.51
- Median
- 0.81
- Q1
- 0.44
- Min
- 0.26
NFLX’s Current Ratio of 1.20 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
LLY
2.44
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.44
- Median
- 0.86
- Q1
- 0.68
- Min
- 0.28
LLY’s Debt-to-Equity Ratio of 2.44 is typical for the Drug Manufacturers - General industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
NFLX
0.73
Entertainment Industry
- Max
- 8.03
- Q3
- 3.76
- Median
- 0.94
- Q1
- 0.70
- Min
- 0.00
NFLX’s Debt-to-Equity Ratio of 0.73 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
LLY
23.61
Drug Manufacturers - General Industry
- Max
- 23.61
- Q3
- 13.25
- Median
- 7.65
- Q1
- 4.36
- Min
- 1.67
LLY’s Interest Coverage Ratio of 23.61 is in the upper quartile for the Drug Manufacturers - General industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
NFLX
14.77
Entertainment Industry
- Max
- 7.49
- Q3
- 3.71
- Median
- 1.51
- Q1
- -0.45
- Min
- -5.05
With an Interest Coverage Ratio of 14.77, NFLX demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | LLY | NFLX |
|---|---|---|
| Current Ratio (TTM) | 1.37 | 1.20 |
| Quick Ratio (TTM) | 1.06 | 1.20 |
| Debt-to-Equity Ratio (TTM) | 2.44 | 0.73 |
| Debt-to-Asset Ratio (TTM) | 0.43 | 0.33 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.18 | 0.38 |
| Interest Coverage Ratio (TTM) | 23.61 | 14.77 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for LLY and NFLX. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
LLY
0.73%
Drug Manufacturers - General Industry
- Max
- 8.82%
- Q3
- 4.09%
- Median
- 3.35%
- Q1
- 1.38%
- Min
- 0.00%
LLY’s Dividend Yield of 0.73% is in the lower quartile for the Drug Manufacturers - General industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
NFLX
0.00%
Entertainment Industry
- Max
- 7.40%
- Q3
- 0.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NFLX currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
LLY
43.74%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 78.91%
- Median
- 60.27%
- Q1
- 43.74%
- Min
- 0.00%
LLY’s Dividend Payout Ratio of 43.74% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
NFLX
0.00%
Entertainment Industry
- Max
- 82.73%
- Q3
- 14.80%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NFLX has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | LLY | NFLX |
|---|---|---|
| Dividend Yield (TTM) | 0.73% | 0.00% |
| Dividend Payout Ratio (TTM) | 43.74% | 0.00% |
Valuation
Price-to-Earnings Ratio
LLY
61.72
Drug Manufacturers - General Industry
- Max
- 44.91
- Q3
- 27.99
- Median
- 18.21
- Q1
- 16.52
- Min
- 3.35
At 61.72, LLY’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Drug Manufacturers - General industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
NFLX
56.76
Entertainment Industry
- Max
- 83.14
- Q3
- 74.29
- Median
- 35.34
- Q1
- 15.48
- Min
- 6.97
NFLX’s P/E Ratio of 56.76 is within the middle range for the Entertainment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
LLY
2.75
Drug Manufacturers - General Industry
- Max
- 3.12
- Q3
- 3.09
- Median
- 2.61
- Q1
- 1.90
- Min
- 0.51
LLY’s Forward PEG Ratio of 2.75 is within the middle range of its peers in the Drug Manufacturers - General industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
NFLX
3.19
Entertainment Industry
- Max
- 5.22
- Q3
- 2.52
- Median
- 0.97
- Q1
- 0.21
- Min
- 0.06
A Forward PEG Ratio of 3.19 places NFLX in the upper quartile for the Entertainment industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
LLY
14.75
Drug Manufacturers - General Industry
- Max
- 7.36
- Q3
- 4.70
- Median
- 3.96
- Q1
- 2.00
- Min
- 0.40
With a P/S Ratio of 14.75, LLY trades at a valuation that eclipses even the highest in the Drug Manufacturers - General industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
NFLX
13.06
Entertainment Industry
- Max
- 4.59
- Q3
- 2.66
- Median
- 1.30
- Q1
- 0.69
- Min
- 0.27
With a P/S Ratio of 13.06, NFLX trades at a valuation that eclipses even the highest in the Entertainment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
LLY
43.48
Drug Manufacturers - General Industry
- Max
- 7.06
- Q3
- 7.06
- Median
- 5.25
- Q1
- 4.06
- Min
- 1.09
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
NFLX
21.90
Entertainment Industry
- Max
- 24.29
- Q3
- 10.90
- Median
- 2.26
- Q1
- 1.18
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Entertainment industry.
Valuation at a Glance
| Symbol | LLY | NFLX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 61.72 | 56.76 |
| Forward PEG Ratio (TTM) | 2.75 | 3.19 |
| Price-to-Sales Ratio (P/S, TTM) | 14.75 | 13.06 |
| Price-to-Book Ratio (P/B, TTM) | 43.48 | 21.90 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 1483.72 | 70.38 |
| EV-to-EBITDA (TTM) | 46.60 | 20.02 |
| EV-to-Sales (TTM) | 15.47 | 13.31 |