Eli Lilly and Company (NYSE:LLY – Get Free Report) and Innoviva (NASDAQ:INVA – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations for Eli Lilly and Company and Innoviva, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eli Lilly and Company | 1 | 5 | 15 | 0 | 2.67 |
| Innoviva | 0 | 0 | 4 | 0 | 3.00 |
Eli Lilly and Company presently has a consensus target price of $977.6471, indicating a potential upside of 52.88%. Innoviva has a consensus target price of $42.75, indicating a potential upside of 112.79%. Given Innoviva’s stronger consensus rating and higher possible upside, analysts clearly believe Innoviva is more favorable than Eli Lilly and Company.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eli Lilly and Company | $45.04 billion | 13.44 | $10.59 billion | $15.30 | 41.80 |
| Innoviva | $358.71 million | 3.52 | $23.39 million | $0.31 | 64.81 |
Eli Lilly and Company has higher revenue and earnings than Innoviva. Eli Lilly and Company is trading at a lower price-to-earnings ratio than Innoviva, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Eli Lilly and Company has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Innoviva has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.
Institutional & Insider Ownership
82.5% of Eli Lilly and Company shares are held by institutional investors. Comparatively, 99.1% of Innoviva shares are held by institutional investors. 0.1% of Eli Lilly and Company shares are held by insiders. Comparatively, 2.3% of Innoviva shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Eli Lilly and Company and Innoviva’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eli Lilly and Company | 25.91% | 92.72% | 16.89% |
| Innoviva | 10.44% | 18.67% | 9.92% |
Summary
Eli Lilly and Company beats Innoviva on 9 of the 14 factors compared between the two stocks.
About Eli Lilly and Company
Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. The company offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity. It also provides oncology products, including Alimta, Cyramza, Erbitux, Jaypirca, Retevmo, Tyvyt, and Verzenio. In addition, the company offers Olumiant for rheumatoid arthritis, atopic dermatitis, severe alopecia areata, and COVID-19; Taltz for plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial spondylarthritis; Omvoh for ulcerative colitis; Cymbalta for depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; Ebglyss for severe atopic dermatitis; and Emgality for migraine prevention and episodic cluster headache. Further, it provides Cialis for erectile dysfunction and benign prostatic hyperplasia; and Forteo for osteoporosis. It has collaborations with Incyte Corporation; Boehringer Ingelheim Pharmaceuticals, Inc.; F. Hoffmann-La Roche Ltd and Genentech, Inc.; Biologics, Inc., AbCellera Biologics Inc.; and Chugai Pharmaceutical Co., Ltd. The company was founded in 1876 and is headquartered in Indianapolis, Indiana.
About Innoviva
Innoviva, Inc. engages in the development and commercialization of pharmaceutical products in the United States and internationally. The company’s products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA) and umeclidinium bromide (UMEC) with a LABA, VI; GIAPREZA (angiotensin II), a vasoconstrictor to increase blood pressure in adults with septic or other distributive shock; XERAVA (eravacycline) for the treatment of complicated intra-abdominal infections in adults; and XACDURO, a beta lactamase inhibitor for the treatment of hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia. Its development pipeline includes zoliflodacin, a late-stage product candidate, a potential single oral dose cure for the treatment of uncomplicated gonorrhea. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. It has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.
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