Eli Lilly vs Merck
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KIRA’s take AI analyst
I put Eli Lilly and Merck side by side, using each one’s latest annual report. Here is what stands out:
- Eli Lilly is the larger business, with $65.2B of revenue in fiscal 2025 against $65.0B for Merck.
- Eli Lilly grew revenue faster (44.7%, against 1.3%).
- Merck turned more of its sales into free cash flow (19.0% FCF margin, against 13.8%).
- Eli Lilly earned a higher return on the capital invested in it (40.8%, against 24.8%).
- Investors pay more for each dollar of Merck’s earnings: a P/E of 111.6x against 42.9x for Eli Lilly.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Eli Lilly
LLY
8/10
Revenue growth5-year growthGross marginNet marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Merck
MRK
2/10
FCF marginShare count change
Side by side
Best in the row
| Latest fiscal year | LLY FY25 | MRK FY25 |
|---|---|---|
| Size | ||
| Market cap | $1.14T | $347.3B |
| Revenue | $65.2B | $65.0B |
| Free cash flow | $9.0B | $12.4B |
| Net income | $20.6B | $18.3B |
| Growth | ||
| Revenue growth | 44.7% | 1.3% |
| 5-year growth | 21.6% | 9.4% |
| Share count change | −0.5% | −1.3% |
| Profitability | ||
| Gross margin | 83.0% | 74.8% |
| Operating margin | — | — |
| Net margin | 31.7% | 28.1% |
| FCF margin | 13.8% | 19.0% |
| Return on capital | 40.8% | 24.8% |
| Return on equity | 101.2% | 36.9% |
| Balance sheet | ||
| Net debt | $33.6B | $34.5B |
| Net debt / EBITDA | 1.2x | 1.2x |
| Dividends and buybacks | $9.5B | $13.3B |
| Valuation & quality | ||
| P/E | 42.9x | 111.6x |
| Piotroski F-score | 8 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.