Financial Analysis: Eli Lilly and Company (NYSE:LLY) and Ono Pharmaceutical (OTCMKTS:OPHLY)

Eli Lilly and Company (NYSE:LLY) and Ono Pharmaceutical (OTCMKTS:OPHLY) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

82.5% of Eli Lilly and Company shares are held by institutional investors. 0.1% of Eli Lilly and Company shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Eli Lilly and Company and Ono Pharmaceutical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eli Lilly and Company	17.08%	56.98%	10.94%
Ono Pharmaceutical	N/A	N/A	N/A

Dividends

Eli Lilly and Company pays an annual dividend of $5.20 per share and has a dividend yield of 0.6%. Ono Pharmaceutical pays an annual dividend of $16.56 per share and has a dividend yield of 344.9%. Eli Lilly and Company pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ono Pharmaceutical pays out 362.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings and target prices for Eli Lilly and Company and Ono Pharmaceutical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eli Lilly and Company	0	2	16	0	2.89
Ono Pharmaceutical	0	0	0	0	N/A

Eli Lilly and Company presently has a consensus target price of $956.88, indicating a potential upside of 3.77%. Given Eli Lilly and Company’s higher probable upside, research analysts clearly believe Eli Lilly and Company is more favorable than Ono Pharmaceutical.

Valuation & Earnings

This table compares Eli Lilly and Company and Ono Pharmaceutical’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eli Lilly and Company	$38.92 billion	22.52	$5.24 billion	$6.79	135.81
Ono Pharmaceutical	N/A	N/A	N/A	$4.57	1.05

Eli Lilly and Company has higher revenue and earnings than Ono Pharmaceutical. Ono Pharmaceutical is trading at a lower price-to-earnings ratio than Eli Lilly and Company, indicating that it is currently the more affordable of the two stocks.

Summary

Eli Lilly and Company beats Ono Pharmaceutical on 11 of the 12 factors compared between the two stocks.

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.

About Ono Pharmaceutical

Ono Pharmaceutical Co., Ltd., together with its subsidiaries, produces, purchases, and sells pharmaceuticals and diagnostic reagents worldwide. It offers Opdivo Intravenous Infusion and Kyprolis Intravenous Injection for malignant tumors; Emend capsules/Proemend intravenous injections for chemotherapy-induced nausea and vomiting; Demser capsules for the symptoms in patients with pheochromocytoma; and Mektovi, Velexbru, and Braftovi capsules for malignant tumors, as well as ADLUMIZ tablets for cancer cachexia. The company also provides Glactiv tablets for type 2 diabetes; Forxiga tablets for diabetes; Onoact Intravenous Infusion for tachyarrhythmia; Opalmon tablets to treat peripheral circulatory disorder; Coralan for chronic heart failure; Orencia injections for rheumatoid arthritis; Rivastach patches for Alzheimer's disease; Ongentys tablets for Parkinson's disease; Parsabiv, an intravenous infusion for dialysis patients; Staybla tablets for overactive bladder; Onon capsules and Dry Syrups for bronchial asthma and allergic rhinitis; and JOYCLU intra-articular injection for the improvement of joint function, as well as Recalbon tablets for osteoporosis. In addition, it develops products for hepatocellular and urothelial carcinoma; ovarian, bladder, prostate, pancreatic, gastric, esophageal, colorectal, thyroid, cell lung, and breast cancer; acute myeloid leukemia; solid tumors; myelodysplastic syndrome; melanoma; T-cell lymphoma; tachyarrhythmia; pemphigus; scleroderma; seizures; diabetic polyneuropathy; neurodegenerative diseases; autoimmune diseases; narcolepsy; and thrombosis. The company has a collaboration with Adimab, LLC to discover novel antibody drugs; a research collaboration with Turbine Ltd. to identify and validate novel oncology targets; Harvard University for validating novel therapeutic targets; and a strategic drug discovery collaboration with Sibylla Biotech in central nervous system disorders. The company was founded in 1717 and is headquartered in Osaka, Japan.