ALKS vs LLY vs ABBV vs JNJ vs MCK

For growth investors, Eli Lilly and Company (LLY) is the stronger pick with 44.

7% revenue growth year-over-year, versus -5. 2% for Alkermes plc (ALKS). Alkermes plc (ALKS) offers the better valuation at 24. 8x trailing P/E, making it the more compelling value choice. Analysts rate Alkermes plc (ALKS) a "Buy" — based on 28 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.

On trailing P/E, Alkermes plc (ALKS) is the cheapest at 24.

8x versus AbbVie Inc. at 85. 5x. On forward P/E, AbbVie Inc. is actually cheaper at 14. 3x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: McKesson Corporation wins at 0. 49x versus Johnson & Johnson's 34. 17x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Eli Lilly and Company (LLY) delivered a total return of +411.

1%, compared to +46. 1% for Johnson & Johnson (JNJ). Over 10 years, the gap is even starker: LLY returned +1238% versus ALKS's -11. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), McKesson Corporation (MCK) is the lower-risk stock at 0.

04β versus Alkermes plc's 1. 06β — meaning ALKS is approximately 2359% more volatile than MCK relative to the S&P 500. On balance sheet safety, Alkermes plc (ALKS) carries a lower debt/equity ratio of 4% versus 160% for Eli Lilly and Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Eli Lilly and Company (LLY) is pulling ahead at 44.

7% versus -5. 2% for Alkermes plc (ALKS). On earnings-per-share growth, the picture is similar: Eli Lilly and Company grew EPS 96. 0% year-over-year, compared to -57. 8% for Johnson & Johnson. Over a 3-year CAGR, LLY leads at 31. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Eli Lilly and Company (LLY) is the more profitable company, earning 31.

7% net margin versus 0. 9% for McKesson Corporation — meaning it keeps 31. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LLY leads at 45. 6% versus 1. 2% for MCK. At the gross margin level — before operating expenses — ALKS leads at 86. 7%, 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.

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, McKesson Corporation (MCK) is the more undervalued stock at a PEG of 0. 49x versus Johnson & Johnson's 34. 17x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, AbbVie Inc. (ABBV) trades at 14. 3x forward P/E versus 28. 2x for Eli Lilly and Company — 14. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MCK: 33. 8% to $1006. 50.

In this comparison, ABBV (3.

2% yield), JNJ (2. 2% yield), LLY (0. 6% yield), MCK (0. 4% yield) pay a dividend. ALKS does not pay a meaningful dividend and should not be held primarily for income.

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.

71), 0. 6% yield, +1238% 10Y return). Both have compounded well over 10 years (LLY: +1238%, ALKS: -11. 0%), 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.

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: ALKS is a small-cap quality compounder stock; LLY is a large-cap high-growth stock; ABBV is a large-cap income-oriented stock; JNJ is a large-cap quality compounder stock; MCK is a mid-cap high-growth stock. LLY, ABBV, JNJ pay a dividend while ALKS, MCK do 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.