Eli Lilly vs Biogen Which Is More Lucrative?

Eli Lilly and Biogen are two prominent pharmaceutical companies that have captured the attention of investors in recent years. Both companies are leaders in the field of biotechnology and have developed innovative drugs to treat various diseases. Eli Lilly is known for its portfolio of diabetes and oncology drugs, while Biogen is renowned for its multiple sclerosis treatments. Investors are closely monitoring the performance of these stocks as they navigate the ever-changing healthcare landscape and seek opportunities for growth and profitability.

Eli Lilly or Biogen?

When comparing Eli Lilly and Biogen, 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 Eli Lilly and Biogen.

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. Eli Lilly has a dividend yield of 0.66%, while Biogen has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Eli Lilly reports a 5-year dividend growth of 14.97% year and a payout ratio of 54.12%. On the other hand, Biogen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Eli Lilly P/E ratio at 84.22 and Biogen's P/E ratio at 14.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Eli Lilly P/B ratio is 49.50 while Biogen's P/B ratio is 1.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Eli Lilly has seen a 5-year revenue growth of 0.81%, while Biogen's is 0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Eli Lilly's ROE at 65.15% and Biogen's ROE at 10.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $778.39 for Eli Lilly and $155.22 for Biogen. Over the past year, Eli Lilly's prices ranged from $561.65 to $972.53, with a yearly change of 73.16%. Biogen's prices fluctuated between $153.62 and $268.30, with a yearly change of 74.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.