Posted by Defense World Staff on Aug 19th, 2024
Roche (OTCMKTS:RHHVF – Get Free Report) and Eli Lilly and Company (NYSE:LLY – Get Free Report) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Earnings & Valuation
This table compares Roche and Eli Lilly and Company’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Roche | N/A | N/A | N/A | $10.81 | 29.76 |
Eli Lilly and Company | $38.92 billion | 22.52 | $5.24 billion | $6.79 | 135.81 |
Eli Lilly and Company has higher revenue and earnings than Roche. Roche is trading at a lower price-to-earnings ratio than Eli Lilly and Company, indicating that it is currently the more affordable of the two stocks.
Dividends
Roche pays an annual dividend of $7.80 per share and has a dividend yield of 2.4%. Eli Lilly and Company pays an annual dividend of $5.20 per share and has a dividend yield of 0.6%. Roche pays out 72.2% of its earnings in the form of a dividend. Eli Lilly and Company pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Roche is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Roche and Eli Lilly and Company’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Roche | N/A | N/A | N/A |
Eli Lilly and Company | 17.08% | 56.98% | 10.94% |
Analyst Ratings
This is a summary of recent recommendations for Roche and Eli Lilly and Company, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Roche | 0 | 0 | 0 | 0 | N/A |
Eli Lilly and Company | 0 | 2 | 16 | 0 | 2.89 |
Eli Lilly and Company has a consensus target price of $956.88, suggesting a potential upside of 3.77%. Given Eli Lilly and Company’s higher probable upside, analysts clearly believe Eli Lilly and Company is more favorable than Roche.
Insider & Institutional Ownership
29.0% of Roche shares are held by institutional investors. Comparatively, 82.5% of Eli Lilly and Company shares are held by institutional investors. 0.1% of Eli Lilly and Company shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Eli Lilly and Company beats Roche on 9 of the 12 factors compared between the two stocks.
About Roche
Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Europe, North America, Latin America, Asia, Africa, Australia, and Oceania. The company offers pharmaceutical products in the therapeutic areas of anemia, blood and solid tumors, dermatology, hemophilia, inflammatory and autoimmune, neurological disorders, ophthalmology, respiratory disorders, and transplantation. It is also developing products for various therapeutic areas. In addition, it offers in vitro tests for the diagnosis of various diseases, such as cancer, diabetes, Covid-19, hepatitis, human papillomavirus, and other diseases; diagnostic instruments; and digital health solutions. Roche Holding AG was founded in 1896 and is based in Basel, Switzerland.
About Eli Lilly and Company
Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. The company offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity. It also provides oncology products, including Alimta, Cyramza, Erbitux, Jaypirca, Retevmo, Tyvyt, and Verzenio. In addition, the company offers Olumiant for rheumatoid arthritis, atopic dermatitis, severe alopecia areata, and COVID-19; Taltz for plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial spondylarthritis; Omvoh for ulcerative colitis; Cymbalta for depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; Ebglyss for severe atopic dermatitis; and Emgality for migraine prevention and episodic cluster headache. Further, it provides Cialis for erectile dysfunction and benign prostatic hyperplasia; and Forteo for osteoporosis. It has collaborations with Incyte Corporation; Boehringer Ingelheim Pharmaceuticals, Inc.; F. Hoffmann-La Roche Ltd and Genentech, Inc.; Biologics, Inc., AbCellera Biologics Inc.; and Chugai Pharmaceutical Co., Ltd. The company was founded in 1876 and is headquartered in Indianapolis, Indiana.
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