HON vs LLY: Which Is the Better Buy?

Side-by-side comparison of Honeywell International Inc. and Eli Lilly and Company — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-17.
Honeywell International Inc. · Industrials
$222.25
-5.5% upside to fair value
Grade D High Quality
VS
Eli Lilly and Company · Healthcare
$1,179.09
+31.7% upside to fair value
High Conviction Grade A High Quality
QuantHub Verdict
LLY has more upside to fair value (+31.7%). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric HON LLY
Current Price $222.25 $1,179.09
Fair Value Estimate $210.05 $1,552.32
Upside to Fair Value -5.5% +31.7%
Market Cap $70.4B $1,110.4B
Forward P/E 15.7x
EV / EBITDA 13.1x 34.3x
Price / Sales 1.9x 14.6x
Price / FCF 17.1x 77.7x
Revenue Growth YoY -6.9% +55.5%
Gross Margin 36.9% 83.5%
Operating Margin 14.9% 45.9%
Return on Equity 23.6% 101.3%
Dividend Yield 0% 0.55%
FCF Yield 5.84% 1.29%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
HON — Honeywell International Inc.
Honeywell International Inc. operates as a diversified industrial conglomerate with a strong presence in multiple sectors including aerospace, building technologies, and performance materials. The company demonstrates high business quality with a durable competitive moat supported by strong margins, a 23.6% return on equity, and solid free cash flow generation of $16.78 per share. However, recent…
LLY — Eli Lilly and Company
Eli Lilly is a global biopharma company whose exceptionally profitable cardiometabolic franchises, led by Mounjaro and Zepbound, are driving a high-quality growth phase: revenue rose 55.5% year over year and earnings rose 168.0% year over year in the most recent quarter, while gross, operating, and net margins were 83.5%, 45.9%, and 35.0%, respectively. Business quality is high because tirzepatid…
Accumulation Zones
Metric HON LLY
Zone Low $157.54 $1,164.24
Zone High $178.54 $1,319.47
In Buy Zone? No Yes
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