Eli Lilly and Company (NYSE:LLY) & Orion Oyj (OTCMKTS:ORINF) Critical Comparison

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Orion Oyj and Eli Lilly and Company, as reported by MarketBeat.com.

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

Eli Lilly and Company has a consensus target price of $961.76, suggesting a potential upside of 0.18%. Given Eli Lilly and Company’s higher possible upside, analysts plainly believe Eli Lilly and Company is more favorable than Orion Oyj.

Institutional and Insider Ownership

18.8% of Orion Oyj shares are owned by institutional investors. Comparatively, 82.5% of Eli Lilly and Company shares are owned by institutional investors. 0.1% of Eli Lilly and Company shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

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

Earnings and Valuation

This table compares Orion Oyj and Eli Lilly and Company’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Oyj	N/A	N/A	N/A	$1.61	29.35
Eli Lilly and Company	$38.92 billion	23.44	$5.24 billion	$6.79	141.39

Eli Lilly and Company has higher revenue and earnings than Orion Oyj. Orion Oyj 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.

Dividends

Orion Oyj pays an annual dividend of $1.25 per share and has a dividend yield of 2.7%. Eli Lilly and Company pays an annual dividend of $5.20 per share and has a dividend yield of 0.5%. Orion Oyj pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Summary

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

About Orion Oyj

Orion Oyj develops, manufactures, and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients (APIs) in Finland, Scandinavia, rest of Europe, North America, and internationally. The company provides prescription drugs and self-care products, which includes Nubeqa for the treatment of prostate cancer; Precedex, Dexdor, and Precedex for human use; Burana for inflammatory pain; Divina series for menopausal symptoms; Trexan for rheumatoid arthritis and cancer; Stalevo, Entacapone, and Comtess/Comtan for Parkinson's disease; Biosimilars for rheumatoid arthritis and inflammatory bowel diseases; and Simdax for acute decompensated heart failure, as well as Fareston for breast cancer. It also offers Salmeterol/fluticasone Easyhaler, Budesonide/formoterol Easyhaler, Formoterol Easyhaler, Budesonide Easyhaler, Beclomet Easyhaler, and Buventol Easyhaler drugs for the treatment of asthma and chronic obstructive pulmonary disease. In addition, the company provides veterinary drugs comprising Bonqat, Clevor, Domosedan, Domitor, Antisedan, Dexdomitor, Domosedan Gel, Sileo, and Tessie; APIs for generic compounds and proprietary products, as well as contract manufacturing services; and markets and sells veterinary drugs manufactured by other international companies. Further, the company has partnership with Propeller Health to connect the Easyhaler(R) product portfolio; and a research collaboration and license agreement with Amneal Pharmaceuticals, Inc. to commercialize Amneal's generic products. Orion Oyj was founded in 1917 and is headquartered in Espoo, Finland.

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.