AstraZeneca vs Eli Lilly Which Is More Promising?

AstraZeneca and Eli Lilly are two major pharmaceutical companies that are known for their contributions to the healthcare industry. Both companies have a strong presence in the market and are highly regarded within the industry. AstraZeneca has a robust portfolio of medications and is known for its innovative research and development initiatives. On the other hand, Eli Lilly is a well-established company with a long history of success in producing quality pharmaceutical products. Investors often compare the stock performance of these two companies to assess potential investment opportunities in the healthcare sector.

AstraZeneca or Eli Lilly?

When comparing AstraZeneca and Eli Lilly, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AstraZeneca and Eli Lilly.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AstraZeneca has a dividend yield of 2.22%, while Eli Lilly has a dividend yield of 0.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AstraZeneca reports a 5-year dividend growth of 0.42% year and a payout ratio of 71.25%. On the other hand, Eli Lilly reports a 5-year dividend growth of 14.97% year and a payout ratio of 54.12%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AstraZeneca P/E ratio at 31.78 and Eli Lilly's P/E ratio at 84.95. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AstraZeneca P/B ratio is 5.07 while Eli Lilly's P/B ratio is 49.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AstraZeneca has seen a 5-year revenue growth of 0.70%, while Eli Lilly's is 0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AstraZeneca's ROE at 16.57% and Eli Lilly's ROE at 65.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $66.14 for AstraZeneca and $773.49 for Eli Lilly. Over the past year, AstraZeneca's prices ranged from $60.47 to $87.68, with a yearly change of 45.00%. Eli Lilly's prices fluctuated between $561.65 and $972.53, with a yearly change of 73.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.