Home > Comparison > Healthcare > LLY vs AMGN
The strategic rivalry between Eli Lilly and Company and Amgen Inc. shapes the healthcare sector’s future. Eli Lilly operates as a pharmaceutical powerhouse with a broad portfolio across diabetes and oncology. Amgen focuses on biotech innovation, emphasizing inflammation and hematology therapies. This analysis pits Lilly’s scale and product diversity against Amgen’s specialized biotech edge to identify which offers a superior risk-adjusted return for a diversified portfolio in 2026.
Table of contents
Companies Overview
Eli Lilly and Company and Amgen Inc. stand as major players shaping the global pharmaceutical landscape.
Eli Lilly and Company: Global Innovator in Human Pharmaceuticals
Eli Lilly leads as a global pharmaceutical giant specializing in human medicines. Its core revenues stem from a diverse portfolio, including diabetes treatments like Humalog and Trulicity, cancer therapies such as Alimta and Cyramza, and autoimmune drugs like Olumiant. In 2026, the company emphasizes collaborative innovation with partners to expand its pipeline and address complex diseases.
Amgen Inc.: Biotech Pioneer in Therapeutic Solutions
Amgen operates as a biotechnology leader focused on human therapeutics for inflammation, oncology, and bone health. It generates revenue through blockbuster drugs like Enbrel and Prolia, alongside a broad therapeutic portfolio. The company’s 2026 strategy centers on strategic collaborations and pipeline expansion targeting unmet medical needs and enhancing patient outcomes.
Strategic Collision: Similarities & Divergences
Both companies invest heavily in innovative drug development yet differ in approach: Eli Lilly blends broad pharmaceutical reach with diverse disease targets, while Amgen leverages biotech specialization and precision therapies. Their primary competition lies in oncology and autoimmune markets. These distinct strategies create divergent investment profiles, with Eli Lilly focusing on broad scale and Amgen on biotech-driven growth.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Eli Lilly and Company (LLY) | Amgen Inc. (AMGN) |
|---|---|---|
| Revenue | 65.2B | 36.8B |
| Cost of Revenue | 10.6B | 6.4B |
| Operating Expenses | 24.9B | 15.4B |
| Gross Profit | 54.6B | 30.3B |
| EBITDA | 27.9B | 17.1B |
| EBIT | 26.4B | 11.8B |
| Interest Expense | 0.8B | 2.8B |
| Net Income | 20.6B | 7.7B |
| EPS | 23.0 | 14.3 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company drives superior profitability and operational efficiency through its financial engine.
Eli Lilly and Company Analysis
Eli Lilly’s revenue soared from 28.3B in 2021 to 65.2B in 2025, more than doubling. Net income followed suit, surging from 5.6B to 20.6B, reflecting robust margin expansion. In 2025, gross margin hit an impressive 83.8%, while net margin reached 31.7%, signaling strong cost control and scalable profitability.
Amgen Inc. Analysis
Amgen’s revenue grew steadily from 26.0B in 2021 to 36.8B in 2025, a 42% increase. Net income rose more modestly from 5.9B to 7.7B. The 2025 gross margin stood at 82.5%, with net margin at 21.0%, indicating solid but less efficient operations. Interest expense remains a drag, tempering net margin growth.
Margin Dominance vs. Steady Growth
Eli Lilly outpaces Amgen in both revenue and net income growth, boasting superior gross and net margins. Lilly’s nearly tripled net income over five years contrasts with Amgen’s modest 31% gain. Investors seeking strong margin power and rapid earnings expansion will find Lilly’s profile more compelling.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of each company:
| Ratios | Eli Lilly and Company (LLY) | Amgen Inc. (AMGN) |
|---|---|---|
| ROE | 77.78% | 89.06% |
| ROIC | 30.20% | 18.35% |
| P/E | 46.76 | 22.84 |
| P/B | 36.37 | 20.34 |
| Current Ratio | 1.58 | 1.14 |
| Quick Ratio | 1.19 | 0.90 |
| D/E (Debt-to-Equity) | 1.60 | 6.31 |
| Debt-to-Assets | 37.79% | 60.28% |
| Interest Coverage | 37.34 | 5.41 |
| Asset Turnover | 0.58 | 0.41 |
| Fixed Asset Turnover | 2.64 | 4.64 |
| Payout ratio | 26.09% | 66.42% |
| Dividend yield | 0.56% | 2.91% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Ratios act as a company’s DNA, exposing hidden risks and revealing operational excellence beneath surface numbers.
Eli Lilly and Company
Eli Lilly boasts a stellar 77.8% ROE and a robust 31.7% net margin, signaling exceptional profitability. However, its high P/E of 46.8 and P/B of 36.4 mark the stock as expensive and stretched. The modest 0.56% dividend yield suggests a focus on reinvestment, notably in R&D at over 20% of revenue.
Amgen Inc.
Amgen delivers an impressive 89.1% ROE with a solid 21.0% net margin, indicating efficient capital use. Its P/E of 22.8 is fair, but a high debt-to-equity ratio of 6.31 raises caution. A healthy 2.91% dividend yield underlines shareholder returns, balanced with moderate R&D spending near 18%.
Premium Valuation vs. Operational Safety
Eli Lilly offers higher profitability but at a premium valuation and lower dividend yield, reflecting growth and R&D emphasis. Amgen balances steady returns with a more conservative price and stronger dividend, despite heavier leverage. Growth-focused investors may prefer Lilly; income seekers might lean toward Amgen.
Which one offers the Superior Shareholder Reward?
I compare Eli Lilly and Company (LLY) and Amgen Inc. (AMGN) on dividends, buybacks, and sustainability in 2026. LLY’s dividend yield hovers near 0.56%, with a conservative 26% payout ratio supported by solid free cash flow (FCF) coverage above 50%. AMGN offers a higher yield near 2.9% but pays out over 66% of earnings, pressuring cash flow despite strong FCF conversion (~81%). Both companies execute buybacks; however, AMGN’s aggressive leverage (debt-to-equity >6x) raises risk, whereas LLY’s moderate debt load supports more sustainable capital allocation. LLY’s balanced distribution and prudent leverage lead me to favor it for more durable total shareholder returns in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Eli Lilly and Company versus Amgen Inc., highlighting their strategic financial strengths and weaknesses:
Amgen dominates in DCF, ROE, and ROA, reflecting superior profitability and asset efficiency. Both firms carry a high debt burden (Debt/Equity score of 1). Eli Lilly’s valuation metrics (PE/PB) lag, indicating potential overvaluation concerns. Amgen offers a more balanced profile, while Eli Lilly relies heavily on discounted cash flow strength amid weak operational returns.
Bankruptcy Risk: Solvency Showdown
Amgen’s Altman Z-Score sits in the grey zone at 2.34, signaling moderate bankruptcy risk, while Eli Lilly scores a robust 7.96, firmly in the safe zone:
This gap suggests Eli Lilly’s financial structure provides stronger long-term survival prospects during turbulent markets compared to Amgen’s more leveraged position.
Financial Health: Quality of Operations
Amgen boasts a very strong Piotroski F-Score of 8, well above Eli Lilly’s average 4, signaling superior operational quality and internal financial health:
Amgen’s high score reflects well-managed profitability, liquidity, and efficiency metrics. Eli Lilly’s middling score raises red flags about its financial stability relative to Amgen.
How are the two companies positioned?
This section dissects the operational DNA of Eli Lilly and Amgen by comparing their revenue distribution and internal dynamics. The final goal is to confront their economic moats to reveal which model delivers the most resilient advantage today.
Revenue Segmentation: The Strategic Mix
The following visual comparison dissects how Eli Lilly and Company and Amgen Inc. diversify their income streams and where their primary sector bets lie:
Eli Lilly anchors its revenue heavily in a single Product segment with $61B in 2025, complemented by $4.2B from Collaboration and Other Revenue. This concentration signals a focused pharmaceutical product strategy with limited diversification risk. Amgen, by contrast, spreads its $29B revenue across multiple key products, including Prolia ($4.4B), Otezla ($2.3B), and ENBREL ($2.2B), among others. Amgen’s diversified portfolio lowers dependence on any single drug and supports ecosystem lock-in through broad therapeutic coverage.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of Eli Lilly and Company (LLY) and Amgen Inc. (AMGN):
LLY Strengths
- High net margin at 31.66%
- Strong ROE of 77.78%
- ROIC at 30.2% well above WACC
- Favorable liquidity ratios
- Significant US and European revenue
- Diverse product segments with growing collaboration revenue
AMGN Strengths
- High ROE of 89.06%
- Favorable net margin at 20.98%
- Strong fixed asset turnover at 4.64
- Higher dividend yield at 2.91%
- Large US and non-US revenue base
- Broad product portfolio including multiple blockbuster drugs
LLY Weaknesses
- Elevated PE (46.76) and PB (36.37) ratios
- Moderate debt-to-equity at 1.6
- Relatively low dividend yield (0.56%)
- Neutral asset turnover metrics
- Debt-to-assets at 37.79% neutral
AMGN Weaknesses
- Elevated debt-to-equity at 6.31
- High debt-to-assets at 60.28%
- Neutral current and quick ratios
- Lower interest coverage ratio (4.27)
- Unfavorable asset turnover at 0.41
- PB ratio unfavorable at 20.34
Both companies show strong profitability and global presence, with LLY demonstrating superior liquidity and valuation concerns, while AMGN faces higher leverage and weaker asset efficiency. These factors influence their capital structure and growth strategies differently.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only barrier protecting long-term profits from relentless competitive erosion. Here is how Eli Lilly and Amgen defend their turf:
Eli Lilly and Company: Innovation and Scale in Specialty Pharmaceuticals
Lilly’s moat stems from strong intangible assets and innovation leadership. Its 2025 ROIC beats WACC by 24.8%, fueling 40%+ EBIT margins and robust margin expansion. New drug launches and global market penetration deepen this moat in 2026.
Amgen Inc.: Biotech Expertise with Focused Therapeutics
Amgen’s moat relies on specialized biologics and manufacturing scale, differentiating from Lilly’s breadth. Its ROIC exceeds WACC by 12.8%, delivering solid but lower margins. Ongoing pipeline developments and collaborations aim to expand its niche but face stiffer competition.
Innovation Depth vs. Biotech Specialization: Who Holds the Moat Crown?
Lilly’s wider moat and superior capital returns outpace Amgen’s narrower biotech focus. I see Lilly better positioned to sustain market dominance and profit growth amid intensifying sector competition.
Which stock offers better returns?
Over the past 12 months, Eli Lilly and Company and Amgen Inc. both showed strong price appreciation, with notable highs and distinct recent trading trends shaping their momentum.
Trend Comparison
Eli Lilly’s stock rose 34.96% over the past year, signaling a bullish trend with decelerating momentum and high volatility. It peaked at 1080.36 and troughed at 625.65.
Amgen’s stock gained 33.68% in the same period, also bullish but with accelerating momentum and lower volatility. Its price ranged between 261.22 and 384.32.
Both companies delivered robust returns, but Eli Lilly outperformed Amgen slightly in total price appreciation over the last year.
Target Prices
Analysts show a bullish target consensus for Eli Lilly and Amgen, projecting solid upside potential versus current prices.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Eli Lilly and Company | 830 | 1300 | 1203.56 |
| Amgen Inc. | 295 | 425 | 358.33 |
Eli Lilly’s consensus target of 1203.56 exceeds its current price of 1040 by about 15.7%, signaling strong growth expectations. Amgen’s target consensus of 358.33 sits slightly below its current price of 369.19, implying limited near-term upside or some valuation caution.
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How do institutions grade them?
Eli Lilly and Company Grades
The following table summarizes recent grades from established institutions for Eli Lilly and Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Deutsche Bank | Maintain | Buy | 2026-02-09 |
| Morgan Stanley | Maintain | Overweight | 2026-02-05 |
| JP Morgan | Maintain | Overweight | 2026-02-05 |
| Cantor Fitzgerald | Maintain | Overweight | 2026-02-05 |
| Wells Fargo | Maintain | Overweight | 2026-02-05 |
| Guggenheim | Maintain | Buy | 2026-01-20 |
| B of A Securities | Maintain | Buy | 2025-12-15 |
| Wells Fargo | Maintain | Overweight | 2025-12-10 |
| BMO Capital | Maintain | Outperform | 2025-12-04 |
| Guggenheim | Maintain | Buy | 2025-12-03 |
Amgen Inc. Grades
The following table summarizes recent grades from established institutions for Amgen Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Argus Research | Maintain | Buy | 2026-02-06 |
| Guggenheim | Maintain | Neutral | 2026-02-06 |
| Morgan Stanley | Maintain | Equal Weight | 2026-02-04 |
| Leerink Partners | Maintain | Outperform | 2026-02-04 |
| Citigroup | Maintain | Neutral | 2026-02-04 |
| Cantor Fitzgerald | Maintain | Neutral | 2026-02-04 |
| UBS | Maintain | Buy | 2026-01-26 |
| Bernstein | Downgrade | Market Perform | 2026-01-20 |
| Truist Securities | Maintain | Hold | 2026-01-08 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-12 |
Which company has the best grades?
Eli Lilly consistently receives Buy and Overweight ratings, signaling strong institutional confidence. Amgen’s grades are more mixed, including Neutral and Hold, with one recent downgrade. Investors may view Eli Lilly’s grades as indicating comparatively higher market endorsement.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing Eli Lilly and Company (LLY) and Amgen Inc. (AMGN) in the 2026 market environment:
1. Market & Competition
Eli Lilly and Company (LLY)
- Dominates with strong innovation in diabetes and oncology but faces intense pharma competition and patent cliffs.
Amgen Inc. (AMGN)
- Competes in diverse therapeutic areas but contends with biosimilar threats and aggressive pricing pressures.
2. Capital Structure & Debt
Eli Lilly and Company (LLY)
- Moderate debt level (D/E 1.6) with strong interest coverage (33.16), signaling manageable leverage risk.
Amgen Inc. (AMGN)
- High leverage (D/E 6.31) and weaker interest coverage (4.27) increase financial vulnerability amid rising rates.
3. Stock Volatility
Eli Lilly and Company (LLY)
- Low beta (0.394) indicates stock stability and less sensitivity to market swings.
Amgen Inc. (AMGN)
- Slightly higher beta (0.472) suggests moderate volatility, still below market average.
4. Regulatory & Legal
Eli Lilly and Company (LLY)
- Faces regulatory scrutiny typical in pharma but benefits from a strong patent portfolio and R&D pipeline.
Amgen Inc. (AMGN)
- Exposed to regulatory risks in multiple jurisdictions; legal challenges around biosimilars could impact profits.
5. Supply Chain & Operations
Eli Lilly and Company (LLY)
- Stable operations with diversified global supply chains; some exposure to raw material cost inflation.
Amgen Inc. (AMGN)
- Supply chain complexity is higher; risks from manufacturing scale and distribution could affect delivery.
6. ESG & Climate Transition
Eli Lilly and Company (LLY)
- Demonstrates strong ESG initiatives aligning with investor expectations; climate strategy advancing steadily.
Amgen Inc. (AMGN)
- ESG efforts improving but still lag peers on certain sustainability metrics, posing reputational risks.
7. Geopolitical Exposure
Eli Lilly and Company (LLY)
- Moderate exposure to global markets; geopolitical tensions in key regions could disrupt supply or sales.
Amgen Inc. (AMGN)
- Higher exposure to geopolitical volatility due to broader international footprint and emerging market reliance.
Which company shows a better risk-adjusted profile?
LLY’s most impactful risk is its elevated valuation multiples (PE 46.76, PB 36.37), which could compress returns if growth falters. AMGN’s greatest risk lies in its high leverage and debt burden, raising financial distress concerns amid potential rate hikes. I see LLY’s robust balance sheet and stable stock volatility as advantages. However, AMGN’s strong operational scores and improving ESG profile slightly offset its debt risk. Given this, Eli Lilly presents a more balanced risk-adjusted profile, supported by a safer Altman Z-score (7.96 vs. 2.34) and lower market volatility, crucial in today’s uncertain environment.
Final Verdict: Which stock to choose?
Eli Lilly’s superpower lies in its exceptional capital efficiency and robust profitability, outpacing peers with a very favorable moat. Its main point of vigilance is the elevated debt-to-equity ratio, which could pressure financial flexibility. It suits portfolios targeting aggressive growth with a tolerance for leverage risk.
Amgen’s strategic moat is its strong recurring revenue and stable cash flow generation, delivering attractive free cash flow yields. It offers better recent price momentum and a safer balance sheet profile relative to Eli Lilly. This stock fits well with GARP investors seeking steady growth with moderate risk.
If you prioritize high returns on invested capital and growth potential, Eli Lilly is the compelling choice due to its unmatched value creation and scalability. However, if you seek better stability and income with reasonable valuation, Amgen offers superior safety and consistent cash flow. Both present viable scenarios depending on your risk appetite and investment horizon.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Eli Lilly and Company and Amgen Inc. to enhance your investment decisions:
