Eli Lilly and (NYSE: LLY) and Aegerion Pharmaceuticals (NASDAQ:AEGR) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Volatility and Risk

Eli Lilly and has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Aegerion Pharmaceuticals has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Earnings & Valuation

This table compares Eli Lilly and and Aegerion Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eli Lilly and $22.00 billion 4.13 $5.99 billion $2.31 37.26
Aegerion Pharmaceuticals N/A N/A N/A ($5.97) -0.31

Eli Lilly and has higher revenue and earnings than Aegerion Pharmaceuticals. Aegerion 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.

Institutional and Insider Ownership

75.7% of Eli Lilly and shares are owned by institutional investors. Comparatively, 84.9% of Aegerion Pharmaceuticals shares are owned by institutional investors. 0.2% of Eli Lilly and shares are owned by company insiders. Comparatively, 4.6% of Aegerion Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Eli Lilly and and Aegerion Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eli Lilly and 1 7 10 0 2.50
Aegerion Pharmaceuticals 0 2 0 0 2.00

Eli Lilly and currently has a consensus target price of $89.53, indicating a potential upside of 4.03%. Aegerion Pharmaceuticals has a consensus target price of $1.50, indicating a potential downside of 19.79%. Given Eli Lilly and’s stronger consensus rating and higher probable upside, analysts plainly believe Eli Lilly and is more favorable than Aegerion Pharmaceuticals.

Dividends

Eli Lilly and pays an annual dividend of $2.08 per share and has a dividend yield of 2.4%. Aegerion 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. Eli Lilly and has increased its dividend for 2 consecutive years.

Profitability

This table compares Eli Lilly and and Aegerion 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%
Aegerion Pharmaceuticals -75.07% N/A -29.21%

Summary

Eli Lilly and beats Aegerion Pharmaceuticals on 10 of the 14 factors compared between the two stocks.

About Eli Lilly and

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.

About Aegerion Pharmaceuticals

Aegerion Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the development and commercialization of therapies for patients with debilitating rare diseases. It operates through pharmaceuticals segment. Its products include lomitapide and metreleptin. Lomitapide is a small molecule microsomal triglyceride transfer protein (MTP) inhibitor. Lomitapide received marketing approval under the brand name Juxtapid (lomitapide) capsules from the United States Food and Drug Administration (FDA) as an adjunct to a low-fat diet and other lipid-lowering treatments. It also received marketing authorization for lomitapide in the European Union (EU) under the brand name LOJUXTA (lomitapide) hard capsules (LOJUXTA) as a treatment for HoFH in adults. Metreleptin is a recombinant human leptin analog that exerts its function by binding to and activating the human leptin receptor. Metreleptin is marketed in the United States under the brand name MYALEPT (metreleptin) for injection (MYALEPT).

Receive News & Ratings for Eli Lilly and Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Eli Lilly and Company and related companies with MarketBeat.com's FREE daily email newsletter.