Eli Lilly and Company (NYSE:LLY – Get Free Report) and Annexon (NASDAQ:ANNX – Get Free Report) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.
Insider & Institutional Ownership
82.5% of Eli Lilly and Company shares are held by institutional investors. 0.1% of Eli Lilly and Company shares are held by insiders. Comparatively, 12.7% of Annexon shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations and price targets for Eli Lilly and Company and Annexon, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eli Lilly and Company | 0 | 3 | 16 | 0 | 2.84 |
| Annexon | 0 | 0 | 6 | 0 | 3.00 |
Profitability
This table compares Eli Lilly and Company and Annexon’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eli Lilly and Company | 18.86% | 67.52% | 12.76% |
| Annexon | N/A | -44.68% | -38.02% |
Valuation and Earnings
This table compares Eli Lilly and Company and Annexon”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eli Lilly and Company | $38.92 billion | 22.37 | $5.24 billion | $6.79 | 134.95 |
| Annexon | N/A | N/A | -$134.24 million | ($1.47) | -5.18 |
Eli Lilly and Company has higher revenue and earnings than Annexon. Annexon is trading at a lower price-to-earnings ratio than Eli Lilly and Company, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Eli Lilly and Company has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Annexon has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.
Summary
Eli Lilly and Company beats Annexon on 9 of the 13 factors compared between the two stocks.
About Eli Lilly and Company
Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. The company offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity. It also provides oncology products, including Alimta, Cyramza, Erbitux, Jaypirca, Retevmo, Tyvyt, and Verzenio. In addition, the company offers Olumiant for rheumatoid arthritis, atopic dermatitis, severe alopecia areata, and COVID-19; Taltz for plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial spondylarthritis; Omvoh for ulcerative colitis; Cymbalta for depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; Ebglyss for severe atopic dermatitis; and Emgality for migraine prevention and episodic cluster headache. Further, it provides Cialis for erectile dysfunction and benign prostatic hyperplasia; and Forteo for osteoporosis. It has collaborations with Incyte Corporation; Boehringer Ingelheim Pharmaceuticals, Inc.; F. Hoffmann-La Roche Ltd and Genentech, Inc.; Biologics, Inc., AbCellera Biologics Inc.; and Chugai Pharmaceutical Co., Ltd. The company was founded in 1876 and is headquartered in Indianapolis, Indiana.
About Annexon
Annexon, Inc., a clinical-stage biopharmaceutical company, discovers and develops medicines for treating inflammatory-related diseases. Its lead candidate is ANX005, an investigational full-length monoclonal antibody, which is in Phase 3 clinical trial for the treatment of patients with guillain-barré syndrome; completed Phase II clinical trial for treating Huntington's disease; and in Phase II clinical trial for the treatment of amyotrophic lateral sclerosis. The company is also developing ANX007, an antigen-binding fragment (Fab) that is in Phase 3 program for the treatment of patients with geographic atrophy; and ANX1502, a novel oral small molecule inhibitor, which is in Phase 1 clinical trials for autoimmune indications. In addition, it develops ANX009, a C1q-blocking Fab that is in Phase I clinical trial for treating patients with lupus nephritis. The company was incorporated in 2011 and is headquartered in Brisbane, California.
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