Eli Lilly and Company vs Merck & Co., Inc.
LLY wins the Tale of the Tape 5–4.
🏆 Tale of the Tape
Green = winner in each category. Higher is better except P/E (lower = cheaper).
Rolling Correlation
Moderately correlated — some diversification benefit from holding both.
Fundamentals
| Metric | LLY | MRK |
|---|---|---|
| Market Cap | $985.4B | $293.2B |
| P/E Ratio | 39.2x | 33.4x |
| Forward P/E | 24.8x | 12.4x |
| P/B | 31.65x | 6.39x |
| Dividend Yield | 0.63% | 2.86% |
| Beta | 0.48 | 0.20 |
Quantitative Metrics
| Metric | LLY | MRK |
|---|---|---|
| DCF Fair Value | $296.11 | $96.93 |
| DCF Upside | -68.2% | -19.3% |
| Piotroski F | 7/9 | 4/9 |
| Altman Z | 7.84 | 4.04 |
| Beneish M | -1.91 | -2.27 |
| FCF Yield | 0.68% | 3.72% |
| Net Debt/EBITDA | 1.1x | 1.1x |
| ROIC | 30.4% | 16.3% |
| WACC | 7.8% | 7.4% |
| ROIC – WACC | 22.5pp | 8.9pp |
| Gross Margin | 83.0% | 74.8% |
| Net Margin | 31.7% | 28.1% |
| Rev Growth YoY | 44.7% | 1.3% |
| Sharpe (1Y) | 0.61 | 1.43 |
| Max Drawdown 3Y | — | — |
| FCF Payout Ratio | 90% | 66% |
LLY Price
MRK Price
ETF Exposure
LLY found in:
MRK found in:
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Quant metrics computed from financial statements and 1,200+ trading days. Correlation is Pearson coefficient on daily log returns. Not investment advice.
LLY vs MRK: Head-to-Head Analysis
Eli Lilly and Company (LLY) and Merck & Co., Inc. (MRK) represent two companies in the Healthcare sector. In our quantitative Tale of the Tape scoring, LLY leads 5–4 across nine fundamental and risk metrics including profitability, valuation, capital efficiency, and financial health.
In terms of capital efficiency, LLY generates a return on invested capital (ROIC) of 30.4% compared to MRK's 16.3%. This suggests LLY is more effective at deploying capital to generate shareholder returns.
The 252-day rolling correlation between LLY and MRK is 0.439, indicating moderate co-movement, with some diversification value from holding both in a portfolio context.
LLY appears in 34 ETFs tracked by SecuritiesDB, while MRK appears in 43 ETFs. Investors holding broad-market ETFs may already have indirect exposure to both stocks.
Frequently Asked Questions
Which stock is the better investment, LLY or MRK?
Our quantitative analysis compares LLY and MRK across nine fundamental dimensions. LLY wins the Tale of the Tape 5–4. However, stock selection depends on your individual risk tolerance, time horizon, and portfolio context. These metrics are computed from SEC filings and market data — they are not investment recommendations.
Are LLY and MRK correlated?
The 252-day correlation between LLY and MRK is 0.439. They show moderate correlation — partially diversifying.
How is the Tale of the Tape scored?
The Tale of the Tape compares both stocks across nine categories: profitability (net margin), valuation (P/E), efficiency (ROIC), health (Piotroski F-Score), safety (Altman Z-Score), growth (revenue YoY), risk (Sharpe ratio), leverage (debt-to-equity), and cash generation (FCF yield). The stock that wins more categories takes the overall score. Lower P/E and lower debt-to-equity count as wins.