Compare Eli Lilly and Company (LLY) vs Bristol-Myers Squibb Company (BMY) Stock

Eli Lilly and Company (LLY) offers the better valuation at 89.9x trailing P/E (30.9x forward), making it the more compelling value choice. Analysts rate Eli Lilly and Company (LLY) a "Buy" — based on 44 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 forward P/E, Bristol-Myers Squibb Company is actually cheaper at 10.0x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Eli Lilly and Company (LLY) delivered a total return of +421.2%, compared to +19.7% for Bristol-Myers Squibb Company (BMY). 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 BMY's +32.4%. 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), Bristol-Myers Squibb Company (BMY) is the lower-risk stock at 0.35β versus Eli Lilly and Company's 0.65β — meaning LLY is approximately 87% more volatile than BMY relative to the S&P 500. On balance sheet safety, Eli Lilly and Company (LLY) carries a lower debt/equity ratio of 2% versus 3% for Bristol-Myers Squibb Company — giving it more financial flexibility in a downturn.

Eli Lilly and Company (LLY) is the more profitable company, earning 23.5% net margin versus -18.5% for Bristol-Myers Squibb Company — meaning it keeps 23.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LLY leads at 38.9% versus 20.0% for BMY. 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.

On forward earnings alone, Bristol-Myers Squibb Company (BMY) trades at 10.0x forward P/E versus 30.9x for Eli Lilly and Company — 20.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LLY: 15.4% to $1214.28.

All stocks in this comparison pay dividends. Bristol-Myers Squibb Company (BMY) offers the highest yield at 3.8%, versus 0.5% for Eli Lilly and Company (LLY).

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%, BMY: +32.4%), 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: LLY is a large-cap quality compounder stock; BMY is a mid-cap income-oriented stock. BMY 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.