LLY vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Eli Lilly and Company and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-01.
Eli Lilly and Company · Healthcare
$934.34
+17.6% upside to fair value
Grade B
High Quality
VS
Microsoft Corporation · Technology
$429.25
-1.3% upside to fair value
Grade B
High Quality
QuantHub Verdict
LLY has more upside to fair value
(+17.6%).
MSFT trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
LLY |
MSFT |
| Current Price |
$934.34 |
$429.25 |
| Fair Value Estimate |
$1,098.43 |
$423.82 |
| Upside to Fair Value |
+17.6%
|
-1.3%
|
| Market Cap |
$882.8B |
$3,187.4B |
| Forward P/E |
33.1x
|
26.8x
|
| EV / EBITDA |
27.9x
|
17.2x
|
| Price / Sales |
12.2x
|
10.4x
|
| Price / FCF |
65.0x
|
41.2x
|
| Revenue Growth YoY |
+55.5%
|
+16.7%
|
| Gross Margin |
82.7%
|
68.6%
|
| Operating Margin |
46.3%
|
46.7%
|
| Return on Equity |
101.3%
|
33.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.54%
|
2.43%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Eli Lilly and Company is a leading global pharmaceutical firm with a dominant position in the diabetes and obesity markets, driven by its blockbuster GLP-1 drugs Mounjaro and Zepbound which generated $36.5 billion in FY2025. The company reported $65.2 billion in total revenue for 2025, making it the top pharma by revenue globally. It exhibits high business quality with a durable competitive moat …
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Accumulation Zones
| Metric |
LLY |
MSFT |
| Zone Low |
$823.82 |
$317.87 |
| Zone High |
$933.67 |
$360.25 |
| In Buy Zone? |
No
|
No
|