Eli Lilly and vs. Teva: Which Pharmaceutical Stock Is a Better Buy in 2026?

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โดย The Motley Fool·Read original

Summary · why it matters

Eli Lilly and Teva Pharmaceutical Industries present contrasting investment cases for 2026, with Eli Lilly riding a GLP-1-driven growth surge and Teva offering a value-oriented recovery play. Eli Lilly’s fiscal 2025 revenue jumped 44% to nearly $65.2 billion, net income roughly doubled to $20.6 billion, and free cash flow reached close to $9 billion, while its debt-to-equity ratio stood at about 1.6x. Teva reported revenue of nearly $17.3 billion, a 4% increase, swung to a net income of approximately $1.4 billion, and generated free cash flow of roughly $1.2 billion, though its debt-to-equity ratio was approximately 2.2x. On valuation, Eli Lilly trades at a forward P/E of 33.1x and a P/S ratio of 15.2x, compared to Teva’s 16.4x forward P/E and 2.3x P/S ratio. Despite the premium, the analysis favors Eli Lilly due to continued momentum from weight-loss and diabetes drugs like Zepbound and Mounjaro, with 2026 revenue projected to reach $85.2 billion and net income near $31 billion, while Teva’s sales are expected to dip to $16.6 billion before pipeline drugs restore growth in 2027.