InvestBattle | Eli Lilly vs Johnson&Johnson

February 23, 2024by

As we noted in the last week’s issue, over the past three months, one of the leaders of growth in the S&P 500 index has been the Pharmaceuticals industry (+17%).

The largest companies in this industry (by market capitalization): Eli Lilly ($719B) and Johnson & Johnson ($380B). They both produce medicines and medical equipment.

According to the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria using the methodology of Stanford University professor Joseph Piotroski.

As you can see, in terms of fundamentals, both companies are currently showing quite strong results. Johnson & Johnson is superior to Eli Lilly in terms of strength. Both companies look attractive for medium- and long-term investments.

Over the past 3 months, Eli Lilly stock has risen by +32.8%, and Johnson & Johnson by +5.2% (the S&P 500 index is up +11.0%). Eli Lilly has not only outperformed its closest competitor, but also demonstrated better results compared to the index.

So, there is no single winner in today’s battle. Johnson & Johnson’s business looks healthier in terms of liquidity, but Eli Lilly’s shares are showing better dynamics.

* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
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