LLY vs. JNJ, MRK, ABBV, NVO, AZN, NVS, UNH, TMO, PFE, and BMY
Should you be buying Eli Lilly and Company stock or one of its competitors? The main competitors of Eli Lilly and Company include Johnson & Johnson (JNJ), Merck & Co., Inc. (MRK), AbbVie (ABBV), Novo Nordisk A/S (NVO), AstraZeneca (AZN), Novartis (NVS), UnitedHealth Group (UNH), Thermo Fisher Scientific (TMO), Pfizer (PFE), and Bristol-Myers Squibb (BMY). These companies are all part of the "medical" sector.
Eli Lilly and Company (NYSE:LLY) and Johnson & Johnson (NYSE:JNJ) are both large-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, media sentiment, valuation, community ranking, institutional ownership, dividends, analyst recommendations, risk and earnings.
Eli Lilly and Company presently has a consensus target price of $769.53, indicating a potential downside of 5.25%. Johnson & Johnson has a consensus target price of $175.86, indicating a potential upside of 16.04%. Given Johnson & Johnson's higher probable upside, analysts clearly believe Johnson & Johnson is more favorable than Eli Lilly and Company.
Johnson & Johnson has higher revenue and earnings than Eli Lilly and Company. Johnson & Johnson is trading at a lower price-to-earnings ratio than Eli Lilly and Company, indicating that it is currently the more affordable of the two stocks.
82.5% of Eli Lilly and Company shares are held by institutional investors. Comparatively, 69.6% of Johnson & Johnson shares are held by institutional investors. 0.1% of Eli Lilly and Company shares are held by insiders. Comparatively, 0.2% of Johnson & Johnson shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
In the previous week, Eli Lilly and Company had 11 more articles in the media than Johnson & Johnson. MarketBeat recorded 48 mentions for Eli Lilly and Company and 37 mentions for Johnson & Johnson. Johnson & Johnson's average media sentiment score of 0.75 beat Eli Lilly and Company's score of 0.49 indicating that Johnson & Johnson is being referred to more favorably in the news media.
Eli Lilly and Company has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Johnson & Johnson has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.
Eli Lilly and Company pays an annual dividend of $5.20 per share and has a dividend yield of 0.6%. Johnson & Johnson pays an annual dividend of $4.96 per share and has a dividend yield of 3.3%. Eli Lilly and Company pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Johnson & Johnson pays out 30.9% of its earnings in the form of a dividend. Johnson & Johnson is clearly the better dividend stock, given its higher yield and lower payout ratio.
Johnson & Johnson has a net margin of 45.26% compared to Eli Lilly and Company's net margin of 17.08%. Eli Lilly and Company's return on equity of 56.98% beat Johnson & Johnson's return on equity.
Eli Lilly and Company received 88 more outperform votes than Johnson & Johnson when rated by MarketBeat users. Likewise, 70.07% of users gave Eli Lilly and Company an outperform vote while only 64.97% of users gave Johnson & Johnson an outperform vote.
Summary
Johnson & Johnson beats Eli Lilly and Company on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LLY and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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