Eli Lilly vs Novartis Which Is More Lucrative?

Eli Lilly and Novartis are two pharmaceutical companies known for their innovative products and strong track record in the healthcare industry. Both companies have a global presence and a diverse portfolio of medications targeting various medical conditions. Investors are closely monitoring their stocks for potential growth opportunities and market performance. With ongoing developments in the healthcare sector, Eli Lilly and Novartis stocks continue to attract interest from investors seeking exposure to the pharmaceutical industry. This comparison explores the key differences and similarities between these two industry giants.

Eli Lilly or Novartis?

When comparing Eli Lilly and Novartis, 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 Novartis.

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 0.63%, while Novartis has a dividend yield of 7.37%. 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, Novartis reports a 5-year dividend growth of 5.40% year and a payout ratio of 43.31%.

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 88.88 and Novartis's P/E ratio at 11.72. 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 52.24 while Novartis's P/B ratio is 4.76.

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 Novartis's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Eli Lilly's ROE at 65.15% and Novartis's ROE at 41.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $817.50 for Eli Lilly and $102.48 for Novartis. Over the past year, Eli Lilly's prices ranged from $561.65 to $972.53, with a yearly change of 73.16%. Novartis's prices fluctuated between $92.35 and $120.92, with a yearly change of 30.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.