Eli Lilly and (LLY) versus Aralez Pharmaceuticals (ARLZ) Head to Head Analysis
Eli Lilly and (NYSE: LLY) and Aralez Pharmaceuticals (NASDAQ:ARLZ) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitabiliy, risk, dividends and earnings.
Risk and Volatility
Eli Lilly and has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Aralez Pharmaceuticals has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
Institutional & Insider Ownership
75.6% of Eli Lilly and shares are owned by institutional investors. Comparatively, 35.6% of Aralez Pharmaceuticals shares are owned by institutional investors. 0.2% of Eli Lilly and shares are owned by insiders. Comparatively, 6.7% of Aralez Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Eli Lilly and and Aralez Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eli Lilly and||$22.00 billion||3.96||$5.99 billion||$2.31||35.74|
|Aralez Pharmaceuticals||$72.18 million||1.02||-$60.55 million||($1.49)||-0.75|
Eli Lilly and has higher revenue and earnings than Aralez Pharmaceuticals. Aralez Pharmaceuticals is trading at a lower price-to-earnings ratio than Eli Lilly and, indicating that it is currently the more affordable of the two stocks.
This table compares Eli Lilly and and Aralez Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eli Lilly and||11.12%||28.71%||10.74%|
This is a breakdown of recent ratings and recommmendations for Eli Lilly and and Aralez Pharmaceuticals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eli Lilly and||1||6||11||0||2.56|
Eli Lilly and presently has a consensus target price of $89.18, suggesting a potential upside of 8.00%. Aralez Pharmaceuticals has a consensus target price of $8.00, suggesting a potential upside of 614.29%. Given Aralez Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Aralez Pharmaceuticals is more favorable than Eli Lilly and.
Eli Lilly and pays an annual dividend of $2.08 per share and has a dividend yield of 2.5%. Aralez Pharmaceuticals does not pay a dividend. Eli Lilly and pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Aralez Pharmaceuticals has increased its dividend for 2 consecutive years.
Eli Lilly and beats Aralez Pharmaceuticals on 10 of the 16 factors compared between the two stocks.
Eli Lilly and Company Profile
Eli Lilly and Company is engaged in drug manufacturing business. The Company discovers, develops, manufactures and markets products in two segments: human pharmaceutical products and animal health products. The Company’s human pharmaceutical business segment sells medicines, which are discovered or developed by its scientists. Its animal health business segment operates through the Company’s Elanco division, which develops, manufactures and markets products for both food animals and companion animals. The Company’s human pharmaceutical products include endocrinology products, neuroscience products, oncology products, immunology products and cardiovascular products. The Company’s animal health products segment includes products for food animals and products for companion animals. As of December 31, 2016, the Company manufactured and distributed its products through facilities in the United States, Puerto Rico and 14 other countries.
Aralez Pharmaceuticals Company Profile
Aralez Pharmaceuticals Inc. is a Canada-based specialty pharmaceutical company. The Company focuses on acquiring, developing and commercializing products in cardiovascular, pain and other areas. The Company’s products include Fibricor, Cambia, Fiorinal, Fiorinal C, Soriatane, Bezalip SR, NeoVisc, Uracyst, Durela, Proferrin, Resultz and Collatamp G. Its development products include YOSPRALA and Bilastine. Fibricor (fenofibric acid) is indicated as a complementary therapy along with diet for the treatment of hypertriglyceridemia, and as a complementary therapy along with diet to reduce elevated low-density lipoprotein cholesterol (LDL-C), total cholesterol (Total-C), triglycerides (TG) and apolipoprotein B (Apo B). Fibricor is also used to increase high-density lipoprotein (HDL) cholesterol (HDL-C) in patients with hypercholesterolemia or mixed dyslipidemia. Cambia (diclofenac potassium for oral solution) is a non-steroidal anti-inflammatory drug (NSAID).
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