Comprehensive Stock Comparison
Compare Novo Nordisk A/S (NVO) vs Eli Lilly and Company (LLY) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | LLY | 32.0% revenue growth vs NVO's 2.3% |
| Value | NVO | Lower P/E (1.8x vs 30.9x), PEG 0.09 vs 5.02 |
| Quality / Margins | NVO | 33.1% net margin vs LLY's 31.0% |
| Stability / Safety | LLY | Beta 0.65 vs NVO's 1.08 |
| Dividends | NVO | 4.7% yield, 8-year raise streak, vs LLY's 0.5% |
| Momentum (1Y) | LLY | +15.0% vs NVO's -57.3% |
| Efficiency (ROA) | NVO | 18.1% ROA vs LLY's 16.0%, ROIC 34.9% vs 33.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Novo Nordisk is a global pharmaceutical company specializing in diabetes and obesity treatments. It generates revenue primarily from diabetes care products—mainly insulin and GLP-1 drugs—which account for over 80% of sales, with its obesity segment growing rapidly. The company's moat comes from its deep expertise in peptide-based therapies, extensive clinical data, and strong brand recognition in diabetes care.
Eli Lilly is a global pharmaceutical company that discovers, develops, and markets innovative medicines for serious diseases like diabetes, cancer, and autoimmune disorders. It generates revenue primarily from drug sales — with diabetes treatments like Trulicity and Mounjaro contributing over 50% of revenue — and from oncology and immunology products. The company's competitive advantage lies in its deep research and development capabilities, particularly in diabetes and obesity treatments where it has established a strong patent-protected portfolio.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
LLY leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). NVO leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
NVO is the larger business by revenue, generating $297.2B annually — 5.0x LLY's $59.4B. Profitability is closely matched — net margins range from 33.1% (NVO) to 31.0% (LLY). On growth, LLY holds the edge at +53.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NVONovo Nordisk A/S | LLYEli Lilly and Com… |
|---|---|---|
| RevenueTrailing 12 months | $297.2B | $59.4B |
| EBITDAEarnings before interest/tax | $144.2B | $28.6B |
| Net IncomeAfter-tax profit | $98.5B | $18.4B |
| Free Cash FlowCash after capex | $56.2B | $9.0B |
| Gross MarginGross profit ÷ Revenue | +81.0% | +83.0% |
| Operating MarginEBIT ÷ Revenue | +41.4% | +45.0% |
| Net MarginNet income ÷ Revenue | +33.1% | +31.0% |
| FCF MarginFCF ÷ Revenue | +18.9% | +15.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -21.5% | +53.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -4.6% | +4.8% |
Valuation Metrics
At 10.3x trailing earnings, NVO trades at a 89% valuation discount to LLY's 89.9x P/E. Adjusting for growth (PEG ratio), NVO offers better value at 0.50x vs LLY's 14.62x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | NVONovo Nordisk A/S | LLYEli Lilly and Com… |
|---|---|---|
| Market CapShares × price | $126.3B | $941.7B |
| Enterprise ValueMkt cap + debt − cash | $142.8B | $972.1B |
| Trailing P/EPrice ÷ TTM EPS | 10.30x | 89.85x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.76x | 30.86x |
| PEG RatioP/E ÷ EPS growth rate | 0.50x | 14.62x |
| EV / EBITDAEnterprise value multiple | 6.27x | 50.45x |
| Price / SalesMarket cap ÷ Revenue | 2.69x | 20.91x |
| Price / BookPrice ÷ Book value/share | 5.44x | 66.65x |
| Price / FCFMarket cap ÷ FCF | 14.11x | 2273.08x |
Profitability & Efficiency
LLY delivers a 77.2% return on equity — every $100 of shareholder capital generates $77 in annual profit, vs $51 for NVO. NVO carries lower financial leverage with a 0.67x debt-to-equity ratio, signaling a more conservative balance sheet compared to LLY's 2.36x. On the Piotroski fundamental quality scale (0–9), LLY scores 6/9 vs NVO's 5/9, reflecting solid financial health.
| Metric | NVONovo Nordisk A/S | LLYEli Lilly and Com… |
|---|---|---|
| ROE (TTM)Return on equity | +50.8% | +77.2% |
| ROA (TTM)Return on assets | +18.1% | +16.0% |
| ROICReturn on invested capital | +34.9% | +33.7% |
| ROCEReturn on capital employed | +42.8% | +40.2% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 0.67x | 2.36x |
| Net DebtTotal debt minus cash | $104.5B | $30.4B |
| Cash & Equiv.Liquid assets | $26.5B | $3.3B |
| Total DebtShort + long-term debt | $131.0B | $33.6B |
| Interest CoverageEBIT ÷ Interest expense | 20.26x | 26.09x |
Total Returns (with DRIP)
A $10,000 investment in LLY five years ago would be worth $52,120 today (with dividends reinvested), compared to $11,607 for NVO. Over the past 12 months, LLY leads with a +15.0% total return vs NVO's -57.3%. The 3-year compound annual growth rate (CAGR) favors LLY at 50.9% vs NVO's -16.7% — a key indicator of consistent wealth creation.
| Metric | NVONovo Nordisk A/S | LLYEli Lilly and Com… |
|---|---|---|
| YTD ReturnYear-to-date | -28.5% | -2.4% |
| 1-Year ReturnPast 12 months | -57.3% | +15.0% |
| 3-Year ReturnCumulative with dividends | -42.2% | +243.3% |
| 5-Year ReturnCumulative with dividends | +16.1% | +421.2% |
| 10-Year ReturnCumulative with dividends | +76.8% | +1411.6% |
| CAGR (3Y)Annualised 3-year return | -16.7% | +50.9% |
Risk & Volatility
LLY is the less volatile stock with a 0.65 beta — it tends to amplify market swings less than NVO's 1.08 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. LLY currently trades 92.8% from its 52-week high vs NVO's 40.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NVONovo Nordisk A/S | LLYEli Lilly and Com… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.08x | 0.65x |
| 52-Week HighHighest price in past year | $91.90 | $1133.95 |
| 52-Week LowLowest price in past year | $37.31 | $623.78 |
| % of 52W HighCurrent price vs 52-week peak | +40.8% | +92.8% |
| RSI (14)Momentum oscillator 0–100 | 23.7 | 46.9 |
| Avg Volume (50D)Average daily shares traded | 20.3M | 2.6M |
Analyst Outlook
Wall Street rates NVO as "Buy" and LLY as "Buy". Consensus price targets imply 25.5% upside for NVO (target: $47) vs 15.4% for LLY (target: $1214). For income investors, NVO offers the higher dividend yield at 4.72% vs LLY's 0.49%.
| Metric | NVONovo Nordisk A/S | LLYEli Lilly and Com… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $47.00 | $1214.28 |
| # AnalystsCovering analysts | 39 | 44 |
| Dividend YieldAnnual dividend ÷ price | +4.7% | +0.5% |
| Dividend StreakConsecutive years of raises | 8 | 10 |
| Dividend / ShareAnnual DPS | $11.19 | $5.18 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +0.3% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Novo Nordisk A/S (NVO) | 100 | 192.83 | +92.8% |
| Eli Lilly and Compa… (LLY) | 100 | 786.01 | +686.0% |
Eli Lilly and Compa… (LLY) returned +421% over 5 years vs Novo Nordisk A/S (NVO)'s +16%. A $10,000 investment in LLY 5 years ago would be worth $52,120 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Novo Nordisk A/S (NVO) | $111.8B | $297.2B | +165.9% |
| Eli Lilly and Compa… (LLY) | $21.2B | $45.0B | +112.2% |
Novo Nordisk A/S's revenue grew from $111.8B (2016) to $297.2B (2025) — a 11.5% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Novo Nordisk A/S (NVO) | 33.9% | 33.1% | -2.3% |
| Eli Lilly and Compa… (LLY) | 12.9% | 23.5% | +82.3% |
Novo Nordisk A/S's net margin went from 34% (2016) to 33% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Novo Nordisk A/S (NVO) | 3.5 | 2.2 | -37.1% |
| Eli Lilly and Compa… (LLY) | 37 | 65.9 | +78.1% |
Novo Nordisk A/S has traded in a 2x–6x P/E range over 9 years; current trailing P/E is ~10x. Eli Lilly and Company has traded in a 15x–101x P/E range over 7 years; current trailing P/E is ~90x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Novo Nordisk A/S (NVO) | 7.48 | 23.03 | +207.9% |
| Eli Lilly and Compa… (LLY) | 2.49 | 11.71 | +370.3% |
Novo Nordisk A/S's EPS grew from $7.48 (2016) to $23.03 (2025) — a 13% CAGR.
Chart 6Free Cash Flow — 5 Years
Novo Nordisk A/S generated $57B FCF in 2025 (+19% vs 2021). Eli Lilly and Company generated $414M FCF in 2024 (-92% vs 2021).
NVO vs LLY: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NVO or LLY a better buy right now?
Novo Nordisk A/S (NVO) offers the better valuation at 10.3x trailing P/E (1.8x forward), making it the more compelling value choice. Analysts rate Novo Nordisk A/S (NVO) a "Buy" — based on 39 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — NVO or LLY?
On trailing P/E, Novo Nordisk A/S (NVO) is the cheapest at 10.3x versus Eli Lilly and Company at 89.9x. On forward P/E, Novo Nordisk A/S is actually cheaper at 1.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Novo Nordisk A/S wins at 0.09x versus Eli Lilly and Company's 5.02x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — NVO or LLY?
Over the past 5 years, Eli Lilly and Company (LLY) delivered a total return of +421.2%, compared to +16.1% for Novo Nordisk A/S (NVO). A $10,000 investment in LLY five years ago would be worth approximately $52K today (assuming dividends reinvested). Over 10 years, the gap is even starker: LLY returned +1412% versus NVO's +76.8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — NVO or LLY?
By beta (market sensitivity over 5 years), Eli Lilly and Company (LLY) is the lower-risk stock at 0.65β versus Novo Nordisk A/S's 1.08β — meaning NVO is approximately 65% more volatile than LLY relative to the S&P 500. On balance sheet safety, Novo Nordisk A/S (NVO) carries a lower debt/equity ratio of 67% versus 2% for Eli Lilly and Company — giving it more financial flexibility in a downturn.
05Which has better profit margins — NVO or LLY?
Novo Nordisk A/S (NVO) is the more profitable company, earning 33.1% net margin versus 23.5% for Eli Lilly and Company — meaning it keeps 33.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NVO leads at 41.4% versus 38.9% for LLY. At the gross margin level — before operating expenses — LLY leads at 81.3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is NVO or LLY more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Novo Nordisk A/S (NVO) is the more undervalued stock at a PEG of 0.09x versus Eli Lilly and Company's 5.02x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Novo Nordisk A/S (NVO) trades at 1.8x forward P/E versus 30.9x for Eli Lilly and Company — 29.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NVO: 25.5% to $47.00.
07Which pays a better dividend — NVO or LLY?
All stocks in this comparison pay dividends. Novo Nordisk A/S (NVO) offers the highest yield at 4.7%, versus 0.5% for Eli Lilly and Company (LLY).
08Is NVO or LLY better for a retirement portfolio?
For long-horizon retirement investors, Eli Lilly and Company (LLY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.65), +1412% 10Y return). Both have compounded well over 10 years (LLY: +1412%, NVO: +76.8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between NVO and LLY?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: NVO is a mid-cap deep-value stock; LLY is a large-cap quality compounder stock. NVO pays a dividend while LLY does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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