Analyzing Prestige Consumer Healthcare (NYSE:PBH) & Eli Lilly and Company (NYSE:LLY)

Eli Lilly and Company (NYSE:LLY) and Prestige Consumer Healthcare (NYSE:PBH) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Institutional & Insider Ownership

82.5% of Eli Lilly and Company shares are owned by institutional investors. Comparatively, 99.9% of Prestige Consumer Healthcare shares are owned by institutional investors. 0.1% of Eli Lilly and Company shares are owned by insiders. Comparatively, 1.5% of Prestige Consumer Healthcare shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Eli Lilly and Company and Prestige Consumer Healthcare”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eli Lilly and Company	$79.67 billion	13.98	$20.64 billion	$29.80	39.71
Prestige Consumer Healthcare	$1.10 billion	1.96	$190.30 million	$3.57	12.80

Eli Lilly and Company has higher revenue and earnings than Prestige Consumer Healthcare. Prestige Consumer Healthcare 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.

Profitability

This table compares Eli Lilly and Company and Prestige Consumer Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eli Lilly and Company	33.53%	97.83%	23.23%
Prestige Consumer Healthcare	15.57%	11.39%	5.66%

Dividends

Eli Lilly and Company pays an annual dividend of $6.92 per share and has a dividend yield of 0.6%. Prestige Consumer Healthcare pays an annual dividend of $1.90 per share and has a dividend yield of 4.2%. Eli Lilly and Company pays out 23.2% of its earnings in the form of a dividend. Prestige Consumer Healthcare pays out 53.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eli Lilly and Company has increased its dividend for 11 consecutive years.

Volatility and Risk

Eli Lilly and Company has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Prestige Consumer Healthcare has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Eli Lilly and Company and Prestige Consumer Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eli Lilly and Company	1	3	25	1	2.87
Prestige Consumer Healthcare	1	3	1	0	2.00

Eli Lilly and Company presently has a consensus price target of $1,308.39, suggesting a potential upside of 10.58%. Prestige Consumer Healthcare has a consensus price target of $67.67, suggesting a potential upside of 48.07%. Given Prestige Consumer Healthcare’s higher probable upside, analysts plainly believe Prestige Consumer Healthcare is more favorable than Eli Lilly and Company.

Summary

Eli Lilly and Company beats Prestige Consumer Healthcare on 14 of the 18 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 Prestige Consumer Healthcare

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally. The company operates in two segments, North American OTC Healthcare and International OTC Healthcare. It offers BC/Goody's analgesic powders, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids and lozenges, Clear Eyes for eye redness relief, Compound W wart removals, DenTek for PEG oral care, Debrox ear wax removals, and Dramamine for motion sickness relief. The company also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer's Eve feminine hygiene, TheraTears dry eye relief, Fess nasal saline spray and washes, and Hydralyte for oral rehydration products. It sells its products through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.