Eli Lilly and vs Merck & Co.: Business Model & Financial Comparison 2026
Eli Lilly and · Healthcare / Drug Manufacturers - General·Merck & Co. · Healthcare / Drug Manufacturers - General
Financial Comparison
| Metric | LLYEli Lilly and | MRKMerck & Co. |
|---|---|---|
| Market Cap | $811.51B | $282.30B |
| Revenue (TTM) | $65.18B | $65.01B |
| Revenue Growth | 42.6% | 5.0% |
| Gross Margin | 83.0% | 77.2% |
| Operating Margin | 44.9% | 32.8% |
| Net Margin | 31.7% | 28.1% |
| Return on Equity | 101.2% | 36.9% |
| P/E (Trailing) | 39.5x | 15.7x |
| P/E (Forward) | 21.5x | 11.7x |
| Free Cash Flow | $1.95B | $11.89B |
| Cash | $7.27B | $14.57B |
| Total Debt | $43.87B | $50.53B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Eli Lilly and
Eli Lilly and Company stands as a leading company in Healthcare. Generating $65.18 billion in annual revenue (growing 42.6% year-over-year) and carrying a market capitalization of $880.04 billion, the company has cemented its position as a foundational player in the global Drug Manufacturers - General landscape. Under the leadership of its leadership team, Eli Lilly and Company continues to execute on a multi-year strategic vision that balances g…
Full Eli Lilly and analysis →Merck & Co.
Merck & Co., Inc. stands as a leading company in Healthcare. Generating $65.01 billion in annual revenue (growing 5.0% year-over-year) and carrying a market capitalization of $286.97 billion, the company has cemented its position as a foundational player in the global Drug Manufacturers - General landscape. Under the leadership of its leadership team, Merck & Co., Inc. continues to execute on a multi-year strategic vision that balances growth inv…
Full Merck & Co. analysis →SWOT Analysis Comparison
Strengths
Eli Lilly and
- With a market capitalization of $880.04B, Eli Lilly and Company is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital acces
- Eli Lilly and Company's gross margin of 83.0% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 44.9% demonstrates
- Revenue grew 42.6% year-over-year to $65.18B, indicating strong demand for Eli Lilly and Company's products and services and outperformance relative to many industry peers.
Merck & Co.
- With a market capitalization of $286.97B, Merck & Co., Inc. is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access th
- Merck & Co., Inc.'s gross margin of 77.2% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 32.8% demonstrates dis
- A return on equity of 36.9% demonstrates that Merck & Co., Inc. generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
Weaknesses
Eli Lilly and
- With a debt-to-equity ratio of 165.3, Eli Lilly and Company carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and increa
Merck & Co.
- Merck & Co., Inc.'s debt-to-equity ratio of 96.0 indicates meaningful financial leverage. Total debt stands at $50.53B against $14.57B in cash and equivalents.
Opportunities
Eli Lilly and
- Eli Lilly and Company operates in the Drug Manufacturers - General segment of the broader Healthcare sector, which represents a $12 trillion global healthcare market by 2030. Even modest share gains i
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Eli Lil
- Earnings growth of 51.4% YoY demonstrates Eli Lilly and Company's ability to convert revenue growth into shareholder value. Analysts project continued earnings expansion driven by operating leverage a
Merck & Co.
- Merck & Co., Inc. operates in the Drug Manufacturers - General segment of the broader Healthcare sector, which represents a $12 trillion global healthcare market by 2030. Even modest share gains in th
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Merck &
- With $14.57B in cash and strong free cash flow generation, Merck & Co., Inc. is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
Threats
Eli Lilly and
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Eli Lilly and Company's revenue is not fully insulated from macroeconomic cycles, and a rece
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Eli Lilly and Compa
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
Merck & Co.
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Merck & Co., Inc.'s revenue is not fully insulated from macroeconomic cycles, and a recessio
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Merck & Co., Inc.'s
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
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Open Comparison ToolEli Lilly and vs Merck & Co.: FAQ
- Is Eli Lilly and bigger than Merck & Co.?
- By market capitalization, Eli Lilly and is larger at $811.51B vs Merck & Co.'s $282.30B.
- Which has better profit margins — Eli Lilly and or Merck & Co.?
- Eli Lilly and has higher net profit margins (31.7%) compared to Merck & Co. (28.1%). Gross and operating margins are compared in the table above.
- What sectors do Eli Lilly and and Merck & Co. operate in?
- Eli Lilly and operates in the Healthcare sector (Drug Manufacturers - General). Merck & Co. operates in the Healthcare sector (Drug Manufacturers - General).
- How does Eli Lilly and's revenue compare to Merck & Co.'s?
- Eli Lilly and generates $65.18B in annual revenue (TTM) while Merck & Co. generates $65.01B. Eli Lilly and is the larger company by revenue as of 2026.