What is the best to buy lly or nono nordisk ?
9/12/2024 10:44pm
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The decision between Eli Lilly (LLY) and Novo Nordisk (NVO) ultimately depends on your investment goals and risk tolerance. Both companies have strengths and potential opportunities, so it's important to consider your own financial situation and investment strategy.
- Market Position and Growth Prospects:
- Eli Lilly: Eli Lilly has a strong market position in the weight loss industry with its injectable weight loss drug Zepbound and diabetes medication Mounjaro. The company is also investing in new treatments, such as Orforglipron for diabetes and weight loss, and Donanemab for Alzheimer's disease1. The weight loss market is expected to grow significantly, which could benefit Eli Lilly's stock2.
- Novo Nordisk: Novo Nordisk is also a leader in the weight loss market with its drug Wegovy. The company has a promising pipeline, including CagriSema, a combination of semaglutide and the amylin analogue cagrilintide, and an oral version of semaglutide3. Novo Nordisk's investment in R&D and clinical trials, as well as its recent clinical trial results for amycretin, indicate a strong commitment to innovation and growth4.
- Financial Performance and Analyst Ratings:
- Eli Lilly: Eli Lilly's recent earnings report showed adjusted earnings of $3.92 per share on $11.3 billion in second-quarter sales, which exceeded analysts' expectations5. Analysts have given Eli Lilly a strong Buy rating, with price targets indicating potential for significant growth61.
- Novo Nordisk: Novo Nordisk's earnings have grown significantly, with a 31% rise in sales and a 51% increase in net profit over the past year7. The company has been given an Outperform rating by BMO Capital Markets, with a price target of $1633.
- Investment Considerations:
- Valuation: Eli Lilly has a market capitalization of approximately $200 billion, while Novo Nordisk's market cap is under $200 billion87. This suggests that Eli Lilly may be a more established and stable investment, while Novo Nordisk may offer more growth potential.
- Supply Constraints: Eli Lilly is easing supply constraints that have limited its growth, which could lead to increased market share and revenue9.
- Manufacturing Investments: Both companies are investing heavily in manufacturing to meet demand for their weight loss drugs1011. Eli Lilly's investment in Ireland aims to boost production of Zepbound and other drugs1011, while Novo Nordisk is expanding its Danish production facility13.
- Risk Considerations:
- Regulatory Approval: Both companies' new drugs are awaiting regulatory approval, which could impact their growth and stock performance814.
- Market Competition: The weight loss market is becoming increasingly competitive, with new entrants and potential new treatments15. This could affect the market share and pricing of existing drugs.
In conclusion, both Eli Lilly and Novo Nordisk have strong positions in the weight loss market and are investing in growth opportunities. Eli Lilly may be a more stable investment with a higher market capitalization, while Novo Nordisk may offer more growth potential due to its pipeline and recent clinical trial results. Your decision should align with your investment goals, risk tolerance, and the specific factors that are important to you.
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Eli Lilly & Co: A Strong Buy on Robust Pipeline and Market Leadership
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Not intended as financial advice