Merck (MRK) vs Eli Lilly (LLY): Stock Comparison
Data as of November 7, 2026. Refreshed weekly from SEC filings and market data.
Eli Lilly is cheaper on earnings, at 46.6 times against 147.8; Eli Lilly keeps the higher net margin (31.9% against 3.6%); Eli Lilly grew revenue faster over the last year (45.5% against 4.9%); Merck pays the higher dividend yield (2.3% against 0.5%). Merck clears 2 of this site's 8 value filters and Eli Lilly 3. Figures are as of November 7, 2026; each is on the page below with its source.
How do Merck and Eli Lilly compare on the numbers?
| Measure | Merck (MRK) | Eli Lilly (LLY) | Clearer lead |
|---|---|---|---|
| Share price | $146.73 | $1,354.00 | |
| Market value | $363 billion | $1.28 trillion | |
| P/E ratio (trailing) | 147.8 | 46.6 | LLY |
| PEG ratio | 25.71 | 1.45 | LLY |
| Free-cash-flow yield | 4.4% | 0.9% | MRK |
| Net profit margin | 3.6% | 31.9% | LLY |
| Revenue growth, last year | 4.9% | 45.5% | LLY |
| Return on equity | 6.6% | 83.7% | LLY |
| Debt to equity | 1.29 | 1.23 | About the same |
| Dividend yield | 2.3% | 0.5% | MRK |
| Margin of safety (DCF) | -32.2% | -543.2% | MRK |
| Value filters passed (of 8) | 2 | 3 | LLY |
| Distance from 52-week high | -6.2% | -4.5% |
How have Merck and Eli Lilly shares done against each other?
Merck 177Eli Lilly 520
Each share price set to 100 on Nov 2021, to Nov 2026. Price only: dividends are not included.
From Nov 2021 to Nov 2026, Merck shares are up 77% and Eli Lilly shares up 420%, so Eli Lilly has pulled ahead of Merck by 342 points of the starting price. The deepest fall from a prior high in that window was 42% for Merck and 34% for Eli Lilly.
| Period | Merck (MRK) | Eli Lilly (LLY) |
|---|---|---|
| Last 1 year | +71.1% | +44.4% |
| Last 3 years | +40.6% | +127.5% |
| Last 5 years | +79.8% | +410.9% |
Which has grown faster, Merck or Eli Lilly?
Over 5 years, Merck grew revenue 9.4% a year and earnings per share 21.2% a year; Eli Lilly grew revenue 21.6% and earnings per share 27.6%. Its net margin averaged 21.3% at Merck and 22.4% at Eli Lilly.
| Measure | Merck (MRK) | Eli Lilly (LLY) |
|---|---|---|
| Latest fiscal year ended | Dec 2025 | Dec 2025 |
| Revenue, first year to latest | $41.5 billion to $65 billion | $24.5 billion to $65.2 billion |
| Revenue growth per year | 9.4% | 21.6% |
| Earnings per share, first year to latest | $2.78 to $7.28 | $6.79 to $22.95 |
| Earnings per share growth per year | 21.2% | 27.6% |
| Net margin, latest year | 28.1% | 31.7% |
| Net margin, average of the years | 21.3% | 22.4% |
| Free cash flow margin, latest year | 19.0% | n/a |
From each company's 10-K filings (SEC EDGAR), over its latest 5 years.
What growth does each share price assume?
| Measure | Merck (MRK) | Eli Lilly (LLY) |
|---|---|---|
| Free cash flow growth the price implies | 15.0% a year | n/a |
| Free cash flow per share | $6.50 | $12.33 |
| Margin of safety on this site's DCF | -32.2% | -543.2% |
At $146.73, Merck's price implies free cash flow growth of 15.0% a year, fading to 2.5% over 10 years. That is more growth than the 8% baseline.
Eli Lilly's price is above what this site's DCF gives even at 40% a year of free cash flow growth, so the price assumes more than any growth rate tested.
The same model and baseline as every stock page. A price that asks for less growth is not a better company, only a lower bar to clear.
Where is each stronger?
Where Merck leads
- Higher free-cash-flow yield: 4.4% against 0.9%
- Higher dividend yield: 2.3% against 0.5%
- Higher margin of safety on this site's DCF: -32.2% against -543.2%
Where Eli Lilly leads
- Lower P/E: 46.6 against 147.8
- Lower PEG: 1.45 against 25.71
- Higher net margin: 31.9% against 3.6%
- Faster revenue growth last year: 45.5% against 4.9%
- Higher return on equity: 83.7% against 6.6%
- More of the 8 value filters: 3 against 2
- Faster revenue growth over its filed record: 21.6% against 9.4%
- Faster earnings-per-share growth over its filed record: 27.6% against 21.2%
- A higher net margin in its latest filed year: 31.7% against 28.1%
- A higher average net margin: 22.4% against 21.3%
About the same on: debt to equity. A lead needs a clear gap (10% apart on a ratio, 1 point on a percentage), so a rounding difference never names a winner. A lead on one measure is not a verdict on the company.
How do the businesses differ?
Merck. Merck makes prescription drugs, vaccines and animal-health products. Keytruda, a cancer immunotherapy, is its biggest product, and it also sells vaccines such as Gardasil. It is called MSD outside the US and Canada.
Eli Lilly. Eli Lilly develops and sells prescription drugs. It is now best known for its diabetes and weight-loss medicines, Mounjaro and Zepbound, and also sells cancer, immunology and Alzheimer's treatments.
Both are in the Pharmaceuticals industry on this site.
What stands out about Merck
- Misses 4 of the 8 value filters. It fails Trailing P/E < 25 (147.79), PEG Ratio < 1.5 (25.71) and Price/Book < 8 (8.65) and 1 more; the other 2 pass and 2 were not evaluated.
- The margin of safety is falling. It went from -27% on Oct 7 to -32% on Nov 7 across 8 weekly readings.
- Weakest against peers: P/E ratio. At 147.8× (peer median 37.6×) it ranks 12th of 12 among pharma & biotech stocks this site tracks.
What stands out about Eli Lilly
- Misses 3 of the 8 value filters. It fails Trailing P/E < 25 (46.55), Price/Book < 8 (31.88) and Price/Sales < 7 (14.85); the other 3 pass and 2 were not evaluated.
- The margin of safety is falling. It went from -374% on Oct 7 to -543% on Nov 7 across 8 weekly readings.
- Strongest against peers: net margin. At 31.9% (peer median 16.2%) it ranks 1st of 15 among pharma & biotech stocks this site tracks.
Frequently asked questions about Merck and Eli Lilly
Which is cheaper, Merck or Eli Lilly?
On trailing earnings, Eli Lilly is cheaper: Merck trades at 147.8 times and Eli Lilly at 46.6 times. On free cash flow, the yields are 4.4% and 0.9%. Cheaper is not the same as better value: read the growth each price assumes below.
Which pays the higher dividend, Merck or Eli Lilly?
Merck pays the higher yield: Merck 2.3% and Eli Lilly 0.5% over the last year.
Which has grown faster, Merck or Eli Lilly?
Over their latest filed five years, Merck grew revenue 9.4% a year and Eli Lilly 21.6%; earnings per share grew 21.2% and 27.6% a year.
Which has more debt, Merck or Eli Lilly?
They carry about the same debt for their equity: debt to equity is 1.29 for Merck and 1.23 for Eli Lilly. A very high figure can also come from buybacks that shrank equity.
Which is more profitable, Merck or Eli Lilly?
Eli Lilly keeps more of each sales dollar as profit: 3.6% for Merck and 31.9% for Eli Lilly, with a return on equity of 6.6% and 83.7%.
Which passes more of the 8 value filters?
Eli Lilly clears more: Merck 2 of 8 and Eli Lilly 3 of 8. The filters are this site's own value rules, not a prediction.
Where do these numbers come from?
Prices, ratios and yield are from this site's weekly data as of November 7, 2026; growth and margins by year are from each company's 10-K filings (sources on Merck and Eli Lilly). The DCF is the same model on every stock page. See Editorial Standards. Educational, not investment advice.