Seek Returns logo

LLY vs. NOW: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at LLY and NOW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolLLYNOW
Company NameEli Lilly and CompanyServiceNow, Inc.
CountryUnited StatesUnited States
GICS SectorHealth CareInformation Technology
GICS IndustryPharmaceuticalsSoftware
Market Capitalization632.40 billion USD184.74 billion USD
ExchangeNYSENYSE
Listing DateJune 1, 1972June 29, 2012
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of LLY and NOW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

LLY vs. NOW: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolLLYNOW
5-Day Price Return3.07%4.63%
13-Week Price Return-6.58%-13.21%
26-Week Price Return-19.09%-10.03%
52-Week Price Return-23.47%6.89%
Month-to-Date Return-4.68%-5.61%
Year-to-Date Return-8.62%-16.02%
10-Day Avg. Volume9.65M2.27M
3-Month Avg. Volume4.51M1.60M
3-Month Volatility40.54%26.69%
Beta0.460.94

Profitability

Return on Equity (TTM)

LLY

88.36%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.90%
Q1
5.63%
Min
-9.96%

LLY’s Return on Equity of 88.36% is exceptionally high, placing it well beyond the typical range for the Pharmaceuticals industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

NOW

16.62%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

NOW’s Return on Equity of 16.62% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

LLY vs. NOW: A comparison of their Return on Equity (TTM) against their respective Pharmaceuticals and Software industry benchmarks.

Net Profit Margin (TTM)

LLY

25.91%

Pharmaceuticals Industry

Max
34.51%
Q3
17.73%
Median
12.12%
Q1
5.99%
Min
-7.73%

A Net Profit Margin of 25.91% places LLY in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.

NOW

13.78%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

NOW’s Net Profit Margin of 13.78% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

LLY vs. NOW: A comparison of their Net Profit Margin (TTM) against their respective Pharmaceuticals and Software industry benchmarks.

Operating Profit Margin (TTM)

LLY

32.37%

Pharmaceuticals Industry

Max
41.53%
Q3
23.00%
Median
16.24%
Q1
9.24%
Min
-6.94%

An Operating Profit Margin of 32.37% places LLY in the upper quartile for the Pharmaceuticals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

NOW

13.28%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

NOW’s Operating Profit Margin of 13.28% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

LLY vs. NOW: A comparison of their Operating Profit Margin (TTM) against their respective Pharmaceuticals and Software industry benchmarks.

Profitability at a Glance

SymbolLLYNOW
Return on Equity (TTM)88.36%16.62%
Return on Assets (TTM)16.02%8.12%
Net Profit Margin (TTM)25.91%13.78%
Operating Profit Margin (TTM)32.37%13.28%
Gross Profit Margin (TTM)82.64%78.52%

Financial Strength

Current Ratio (MRQ)

LLY

1.28

Pharmaceuticals Industry

Max
4.49
Q3
2.77
Median
1.74
Q1
1.26
Min
0.11

LLY’s Current Ratio of 1.28 aligns with the median group of the Pharmaceuticals industry, indicating that its short-term liquidity is in line with its sector peers.

NOW

1.09

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

NOW’s Current Ratio of 1.09 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

LLY vs. NOW: A comparison of their Current Ratio (MRQ) against their respective Pharmaceuticals and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

LLY

2.18

Pharmaceuticals Industry

Max
2.44
Q3
1.07
Median
0.42
Q1
0.11
Min
0.00

LLY’s leverage is in the upper quartile of the Pharmaceuticals industry, with a Debt-to-Equity Ratio of 2.18. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

NOW

0.14

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

NOW’s Debt-to-Equity Ratio of 0.14 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

LLY vs. NOW: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Pharmaceuticals and Software industry benchmarks.

Interest Coverage Ratio (TTM)

LLY

20.36

Pharmaceuticals Industry

Max
103.95
Q3
44.18
Median
9.83
Q1
2.82
Min
-42.71

LLY’s Interest Coverage Ratio of 20.36 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.

NOW

32.13

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

NOW’s Interest Coverage Ratio of 32.13 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

LLY vs. NOW: A comparison of their Interest Coverage Ratio (TTM) against their respective Pharmaceuticals and Software industry benchmarks.

Financial Strength at a Glance

SymbolLLYNOW
Current Ratio (MRQ)1.281.09
Quick Ratio (MRQ)0.530.99
Debt-to-Equity Ratio (MRQ)2.180.14
Interest Coverage Ratio (TTM)20.3632.13

Growth

Revenue Growth

LLY vs. NOW: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

LLY vs. NOW: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

LLY

0.77%

Pharmaceuticals Industry

Max
6.98%
Q3
3.32%
Median
2.13%
Q1
0.14%
Min
0.00%

LLY’s Dividend Yield of 0.77% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.

NOW

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

NOW 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.

LLY vs. NOW: A comparison of their Dividend Yield (TTM) against their respective Pharmaceuticals and Software industry benchmarks.

Dividend Payout Ratio (TTM)

LLY

36.46%

Pharmaceuticals Industry

Max
165.20%
Q3
90.59%
Median
49.13%
Q1
28.91%
Min
0.00%

LLY’s Dividend Payout Ratio of 36.46% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

NOW

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

NOW 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.

LLY vs. NOW: A comparison of their Dividend Payout Ratio (TTM) against their respective Pharmaceuticals and Software industry benchmarks.

Dividend at a Glance

SymbolLLYNOW
Dividend Yield (TTM)0.77%0.00%
Dividend Payout Ratio (TTM)36.46%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

LLY

47.48

Pharmaceuticals Industry

Max
42.51
Q3
26.88
Median
19.11
Q1
15.12
Min
0.00

At 47.48, LLY’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Pharmaceuticals industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

NOW

111.05

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

A P/E Ratio of 111.05 places NOW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

LLY vs. NOW: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Pharmaceuticals and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

LLY

12.30

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

With a P/S Ratio of 12.30, LLY trades at a valuation that eclipses even the highest in the Pharmaceuticals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

NOW

15.30

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

NOW’s P/S Ratio of 15.30 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

LLY vs. NOW: A comparison of their Price-to-Sales Ratio (TTM) against their respective Pharmaceuticals and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

LLY

40.43

Pharmaceuticals Industry

Max
9.78
Q3
4.96
Median
2.23
Q1
1.46
Min
0.60

At 40.43, LLY’s P/B Ratio is at an extreme premium to the Pharmaceuticals industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

NOW

19.48

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

NOW’s P/B Ratio of 19.48 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

LLY vs. NOW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Pharmaceuticals and Software industry benchmarks.

Valuation at a Glance

SymbolLLYNOW
Price-to-Earnings Ratio (TTM)47.48111.05
Price-to-Sales Ratio (TTM)12.3015.30
Price-to-Book Ratio (MRQ)40.4319.48
Price-to-Free Cash Flow Ratio (TTM)326.0348.48