Eli Lilly vs Merck & Co Which Is Stronger?

Eli Lilly and Merck & Co are two well-known pharmaceutical companies that have been competing in the market for years. Both companies are leaders in the industry, producing a wide range of drugs and medications. Investors often compare the performance of their stocks to determine which company offers better opportunities for growth and profitability. Understanding the factors that influence the performance of Eli Lilly and Merck & Co stocks can help investors make informed decisions about their investment portfolios.

Eli Lilly or Merck & Co?

When comparing Eli Lilly and Merck & Co, 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 Merck & Co.

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 Merck & Co has a dividend yield of 3.04%. 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, Merck & Co reports a 5-year dividend growth of 8.26% year and a payout ratio of 63.72%.

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 Merck & Co's P/E ratio at 21.10. 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 Merck & Co's P/B ratio is 5.76.

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 Merck & Co's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Eli Lilly's ROE at 65.15% and Merck & Co's ROE at 29.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $778.39 for Eli Lilly and $100.12 for Merck & Co. Over the past year, Eli Lilly's prices ranged from $561.65 to $972.53, with a yearly change of 73.16%. Merck & Co's prices fluctuated between $94.48 and $134.63, with a yearly change of 42.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.