Eton Pharmaceuticals (NASDAQ:ETON – Get Free Report) and Eli Lilly and Company (NYSE:LLY – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.
Risk & Volatility
Eton Pharmaceuticals has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Eli Lilly and Company has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.
Valuation & Earnings
This table compares Eton Pharmaceuticals and Eli Lilly and Company”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eton Pharmaceuticals | $79.95 million | 17.87 | -$4.60 million | $0.38 | 131.58 |
| Eli Lilly and Company | $65.18 billion | 18.42 | $20.64 billion | $29.80 | 42.80 |
Eli Lilly and Company has higher revenue and earnings than Eton Pharmaceuticals. Eli Lilly and Company is trading at a lower price-to-earnings ratio than Eton Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
27.9% of Eton Pharmaceuticals shares are held by institutional investors. Comparatively, 82.5% of Eli Lilly and Company shares are held by institutional investors. 16.5% of Eton Pharmaceuticals shares are held by insiders. Comparatively, 0.1% of Eli Lilly and Company shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Eton Pharmaceuticals and Eli Lilly and Company’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eton Pharmaceuticals | 12.02% | 40.13% | 12.37% |
| Eli Lilly and Company | 33.53% | 97.83% | 23.23% |
Analyst Ratings
This is a summary of recent recommendations for Eton Pharmaceuticals and Eli Lilly and Company, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eton Pharmaceuticals | 0 | 1 | 4 | 1 | 3.00 |
| Eli Lilly and Company | 1 | 3 | 24 | 1 | 2.86 |
Eton Pharmaceuticals currently has a consensus target price of $71.50, indicating a potential upside of 43.00%. Eli Lilly and Company has a consensus target price of $1,317.93, indicating a potential upside of 3.33%. Given Eton Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Eton Pharmaceuticals is more favorable than Eli Lilly and Company.
Summary
Eli Lilly and Company beats Eton Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
About Eton Pharmaceuticals
Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing, acquiring, and commercializing pharmaceutical products for rare diseases. The company offers ALKINDI SPRINKLE, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; Betaine Anhydrous for the treatment of homocystinuria; and Nitisinone for the treatment of tyrosinemia type 1. It also provides Zeneo hydrocortisone autoinjector for the treatment of adrenal crisis. Eton Pharmaceuticals, Inc. was incorporated in 2017 and is based in Deer Park, Illinois.
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.
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