LLY vs. PFE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at LLY and PFE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
LLY’s market capitalization of 734.92 billion USD is substantially larger than PFE’s 137.53 billion USD, indicating a significant difference in their market valuations.
With betas of 0.39 for LLY and 0.49 for PFE, both stocks show similar sensitivity to overall market movements.
| Symbol | LLY | PFE |
|---|---|---|
| Company Name | Eli Lilly and Company | Pfizer Inc. |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Drug Manufacturers - General |
| CEO | David A. Ricks | Albert Bourla |
| Price | 775.45 USD | 24.19 USD |
| Market Cap | 734.92 billion USD | 137.53 billion USD |
| Beta | 0.39 | 0.49 |
| Exchange | NYSE | NYSE |
| IPO Date | June 1, 1972 | June 1, 1972 |
| ADR | No | No |
Historical Performance
This chart compares the performance of LLY and PFE 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.
Profitability
Return on Equity
LLY
76.92%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 78.00%
- Median
- 31.21%
- Q1
- 16.63%
- 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.
PFE
8.78%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 78.00%
- Median
- 31.21%
- Q1
- 16.63%
- Min
- 2.76%
PFE’s Return on Equity of 8.78% is in the lower quartile for the Drug Manufacturers - General industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Return on Invested Capital
LLY
25.72%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- 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.
PFE
8.97%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
PFE’s Return on Invested Capital of 8.97% is in the lower quartile for the Drug Manufacturers - General industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
Net Profit Margin
LLY
22.66%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- 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.
PFE
12.59%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
PFE’s Net Profit Margin of 12.59% 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.
Operating Profit Margin
LLY
40.70%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- 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.
PFE
23.65%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
PFE’s Operating Profit Margin of 23.65% is around the midpoint for the Drug Manufacturers - General industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | LLY | PFE |
|---|---|---|
| Return on Equity (TTM) | 76.92% | 8.78% |
| Return on Assets (TTM) | 12.42% | 3.78% |
| Return on Invested Capital (TTM) | 25.72% | 8.97% |
| Net Profit Margin (TTM) | 22.66% | 12.59% |
| Operating Profit Margin (TTM) | 40.70% | 23.65% |
| Gross Profit Margin (TTM) | 81.70% | 67.39% |
Financial Strength
Current Ratio
LLY
1.37
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.38
- Median
- 1.27
- Q1
- 0.89
- 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.
PFE
1.26
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.38
- Median
- 1.27
- Q1
- 0.89
- Min
- 0.74
PFE’s Current Ratio of 1.26 aligns with the median group of the Drug Manufacturers - General 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
- 2.57
- Median
- 1.08
- Q1
- 0.71
- 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.
PFE
0.68
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.57
- Median
- 1.08
- Q1
- 0.71
- Min
- 0.28
Falling into the lower quartile for the Drug Manufacturers - General industry, PFE’s Debt-to-Equity Ratio of 0.68 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
LLY
23.61
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- 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.
PFE
5.00
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
PFE’s Interest Coverage Ratio of 5.00 is positioned comfortably within the norm for the Drug Manufacturers - General industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | LLY | PFE |
|---|---|---|
| Current Ratio (TTM) | 1.37 | 1.26 |
| Quick Ratio (TTM) | 1.06 | 0.96 |
| Debt-to-Equity Ratio (TTM) | 2.44 | 0.68 |
| Debt-to-Asset Ratio (TTM) | 0.43 | 0.29 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.18 | 3.47 |
| Interest Coverage Ratio (TTM) | 23.61 | 5.00 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for LLY and PFE. 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
0.72%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.27%
- Median
- 3.42%
- Q1
- 2.43%
- Min
- 0.00%
LLY’s Dividend Yield of 0.72% 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.
PFE
7.03%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.27%
- Median
- 3.42%
- Q1
- 2.43%
- Min
- 0.00%
With a Dividend Yield of 7.03%, PFE offers a more attractive income stream than most of its peers in the Drug Manufacturers - General industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
LLY
43.74%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 79.84%
- Median
- 61.93%
- Q1
- 45.09%
- Min
- 0.00%
LLY’s Dividend Payout Ratio of 43.74% is in the lower quartile for the Drug Manufacturers - General industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
PFE
121.75%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 79.84%
- Median
- 61.93%
- Q1
- 45.09%
- Min
- 0.00%
PFE’s Dividend Payout Ratio of 121.75% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | LLY | PFE |
|---|---|---|
| Dividend Yield (TTM) | 0.72% | 7.03% |
| Dividend Payout Ratio (TTM) | 43.74% | 121.75% |
Valuation
Price-to-Earnings Ratio
LLY
62.75
Drug Manufacturers - General Industry
- Max
- 27.97
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
At 62.75, 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.
PFE
17.45
Drug Manufacturers - General Industry
- Max
- 27.97
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
PFE’s P/E Ratio of 17.45 is within the middle range for the Drug Manufacturers - General 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
2.79
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
LLY’s Forward PEG Ratio of 2.79 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.
PFE
-3.68
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
PFE has a negative Forward PEG Ratio of -3.68. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
Price-to-Sales Ratio
LLY
15.00
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
With a P/S Ratio of 15.00, 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.
PFE
2.20
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
PFE’s P/S Ratio of 2.20 aligns with the market consensus for the Drug Manufacturers - General industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
LLY
44.21
Drug Manufacturers - General Industry
- Max
- 14.02
- Q3
- 8.90
- Median
- 5.00
- Q1
- 3.42
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
PFE
1.52
Drug Manufacturers - General Industry
- Max
- 14.02
- Q3
- 8.90
- Median
- 5.00
- Q1
- 3.42
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
Valuation at a Glance
| Symbol | LLY | PFE |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 62.75 | 17.45 |
| Forward PEG Ratio (TTM) | 2.79 | -3.68 |
| Price-to-Sales Ratio (P/S, TTM) | 15.00 | 2.20 |
| Price-to-Book Ratio (P/B, TTM) | 44.21 | 1.52 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 1508.46 | 12.26 |
| EV-to-EBITDA (TTM) | 47.34 | 11.45 |
| EV-to-Sales (TTM) | 15.72 | 3.16 |