Eli Lilly vs Merck Indonesia Which Is a Smarter Choice?

Eli Lilly and Company and Merck & Co., Inc. are two of the leading pharmaceutical companies in the world, with a significant presence in Indonesia's healthcare market. Both companies have a strong track record of developing innovative drugs to treat a wide range of diseases and have shown consistent growth in their stock performances. Investors looking to capitalize on the promising growth opportunities in the Indonesian healthcare sector may find these two stocks particularly appealing due to their strong market position and potential for future expansion.

Eli Lilly or Merck Indonesia?

When comparing Eli Lilly and Merck Indonesia, 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 Indonesia.

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 Indonesia has a dividend yield of 8.96%. 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 Indonesia reports a 5-year dividend growth of 3.08% year and a payout ratio of 115.53%.

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 Indonesia's P/E ratio at 12.87. 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 Indonesia's P/B ratio is 2.19.

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 Indonesia's is 0.57%. 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 Indonesia's ROE at 16.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $778.39 for Eli Lilly and Rp3570.00 for Merck Indonesia. Over the past year, Eli Lilly's prices ranged from $561.65 to $972.53, with a yearly change of 73.16%. Merck Indonesia's prices fluctuated between Rp3390.00 and Rp4400.00, with a yearly change of 29.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.