Comprehensive Stock Comparison
Compare Eli Lilly and Company (LLY) vs Novo Nordisk A/S (NVO) 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
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.
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.
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 | LLYEli Lilly and Com… | NVONovo Nordisk A/S |
|---|---|---|
| RevenueTrailing 12 months | $59.4B | $297.2B |
| EBITDAEarnings before interest/tax | $28.6B | $144.2B |
| Net IncomeAfter-tax profit | $18.4B | $98.5B |
| Free Cash FlowCash after capex | $9.0B | $56.2B |
| Gross MarginGross profit ÷ Revenue | +83.0% | +81.0% |
| Operating MarginEBIT ÷ Revenue | +45.0% | +41.4% |
| Net MarginNet income ÷ Revenue | +31.0% | +33.1% |
| FCF MarginFCF ÷ Revenue | +15.2% | +18.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +53.9% | -21.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +4.8% | -4.6% |
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 | LLYEli Lilly and Com… | NVONovo Nordisk A/S |
|---|---|---|
| Market CapShares × price | $941.7B | $126.3B |
| Enterprise ValueMkt cap + debt − cash | $972.1B | $142.8B |
| Trailing P/EPrice ÷ TTM EPS | 89.85x | 10.30x |
| Forward P/EPrice ÷ next-FY EPS est. | 30.86x | 1.76x |
| PEG RatioP/E ÷ EPS growth rate | 14.62x | 0.50x |
| EV / EBITDAEnterprise value multiple | 50.45x | 6.27x |
| Price / SalesMarket cap ÷ Revenue | 20.91x | 2.69x |
| Price / BookPrice ÷ Book value/share | 66.65x | 5.44x |
| Price / FCFMarket cap ÷ FCF | 2273.08x | 14.11x |
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 | LLYEli Lilly and Com… | NVONovo Nordisk A/S |
|---|---|---|
| ROE (TTM)Return on equity | +77.2% | +50.8% |
| ROA (TTM)Return on assets | +16.0% | +18.1% |
| ROICReturn on invested capital | +33.7% | +34.9% |
| ROCEReturn on capital employed | +40.2% | +42.8% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 2.36x | 0.67x |
| Net DebtTotal debt minus cash | $30.4B | $104.5B |
| Cash & Equiv.Liquid assets | $3.3B | $26.5B |
| Total DebtShort + long-term debt | $33.6B | $131.0B |
| Interest CoverageEBIT ÷ Interest expense | 26.09x | 20.26x |
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 | LLYEli Lilly and Com… | NVONovo Nordisk A/S |
|---|---|---|
| YTD ReturnYear-to-date | -2.4% | -28.5% |
| 1-Year ReturnPast 12 months | +15.0% | -57.3% |
| 3-Year ReturnCumulative with dividends | +243.3% | -42.2% |
| 5-Year ReturnCumulative with dividends | +421.2% | +16.1% |
| 10-Year ReturnCumulative with dividends | +1411.6% | +76.8% |
| CAGR (3Y)Annualised 3-year return | +50.9% | -16.7% |
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 | LLYEli Lilly and Com… | NVONovo Nordisk A/S |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.65x | 1.08x |
| 52-Week HighHighest price in past year | $1133.95 | $91.90 |
| 52-Week LowLowest price in past year | $623.78 | $37.31 |
| % of 52W HighCurrent price vs 52-week peak | +92.8% | +40.8% |
| RSI (14)Momentum oscillator 0–100 | 46.9 | 23.7 |
| Avg Volume (50D)Average daily shares traded | 2.6M | 20.3M |
Analyst Outlook
Wall Street rates LLY as "Buy" and NVO 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 | LLYEli Lilly and Com… | NVONovo Nordisk A/S |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $1214.28 | $47.00 |
| # AnalystsCovering analysts | 44 | 39 |
| Dividend YieldAnnual dividend ÷ price | +0.5% | +4.7% |
| Dividend StreakConsecutive years of raises | 10 | 8 |
| Dividend / ShareAnnual DPS | $5.18 | $11.19 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.3% | +0.2% |
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 |
|---|---|---|---|
| Eli Lilly and Compa… (LLY) | 100 | 786.01 | +686.0% |
| Novo Nordisk A/S (NVO) | 100 | 192.83 | +92.8% |
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 |
|---|---|---|---|
| Eli Lilly and Compa… (LLY) | $21.2B | $45.0B | +112.2% |
| Novo Nordisk A/S (NVO) | $111.8B | $297.2B | +165.9% |
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 |
|---|---|---|---|
| Eli Lilly and Compa… (LLY) | 12.9% | 23.5% | +82.3% |
| Novo Nordisk A/S (NVO) | 33.9% | 33.1% | -2.3% |
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 |
|---|---|---|---|
| Eli Lilly and Compa… (LLY) | 37 | 65.9 | +78.1% |
| Novo Nordisk A/S (NVO) | 3.5 | 2.2 | -37.1% |
Eli Lilly and Company has traded in a 15x–101x P/E range over 7 years; current trailing P/E is ~90x. Novo Nordisk A/S has traded in a 2x–6x P/E range over 9 years; current trailing P/E is ~10x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Eli Lilly and Compa… (LLY) | 2.49 | 11.71 | +370.3% |
| Novo Nordisk A/S (NVO) | 7.48 | 23.03 | +207.9% |
Novo Nordisk A/S's EPS grew from $7.48 (2016) to $23.03 (2025) — a 13% CAGR.
Chart 6Free Cash Flow — 5 Years
Eli Lilly and Company generated $414M FCF in 2024 (-92% vs 2021). Novo Nordisk A/S generated $57B FCF in 2025 (+19% vs 2021).
LLY vs NVO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LLY or NVO 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 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.
02Which has the better valuation — LLY or NVO?
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 — LLY or NVO?
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 — LLY or NVO?
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 — LLY or NVO?
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 LLY or NVO 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 — LLY or NVO?
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 LLY or NVO 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 LLY and NVO?
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; NVO is a mid-cap deep-value 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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