Compare Stocks › EA vs LLY

Electronic Arts Inc. (EA) vs Eli Lilly and Company (LLY): Which Is the Better Buy in 2026?

As of 2026-08-03, EA is overvalued at $210, with a DCF intrinsic value of $92 and a margin of safety of -127%. LLY is undervalued at $1149, with an intrinsic value of $1529604356065 and a margin of safety of 100%. Of the two, LLY has the wider margin of safety.

Electronic Arts Inc.

$209.86

LLY

Eli Lilly and Company

$1148.84

Rewards

★Gross margin of 79.0% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Electronic Arts Inc. scores 90/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
★Free cash flow has grown at a 20.0% CAGR over the past 4 years, demonstrating strong earnings power growth.

LLY

★Eli Lilly and Company has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Gross margin of 82.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Eli Lilly and Company scores 73/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

⚠Trailing P/E of 60.0x is 30% above the historical average of 46.3x — the stock trades at a premium to its own history.
⚠6 insider sales totaling $3.4M with no purchases in the past 3 months — insiders are reducing their exposure.
⚠Market sentiment is in extreme greed territory (score: 77/100) — elevated optimism may warrant caution.

LLY

⚠Insiders have sold $18.6M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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LLY

Valuation

$2.22B

Free Cash Flow

$9.16B

4.19%

FCF Yield

N/A

59.96

Trailing P/E

40.81

21.79

Forward P/E

25.48

Quality & Moat

16.57%

ROIC

37.80%

13.49%

ROE

107.46%

78.97%

Gross Margin

82.83%

1.30

PEG Ratio

1.61

Balance Sheet Safety

Net cash

Net Debt / Equity

1.22

N/A

Interest Coverage

N/A

-0.76

Net Debt / EBITDA

1.05

0.36%

Dividend Yield

0.60%

EA: 4Ties: 2LLY: 5

EALLY

Historical Fundamentals

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Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

LLY

$1 Retained Earnings Test

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$5.68

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$2.69B

Δ Market Cap

+$15.26B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

LLY

$0.00

created per $1 retained over 3 years

Value Destroyer

Σ Retained

$22.34B

Δ Market Cap

+$708.84

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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126.9% Overvalued

Price is 126.9% above estimated fair value

Current Price: $209.86

Strongly undervalued

Strongly overvalued

Fair Value: $92.48

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

LLY

100.0% Margin of Safety

Price is 100.0% below estimated fair value

Current Price: $1148.84

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $1529604356065.14

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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What growth rate is the market pricing in at $210?

+21.0%

Market-Implied Owner Earnings Growth

Standard FCF implies +9.8%

The market implies +21.0% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +9.8%, reflecting heavy growth investment.

LLY

What growth rate is the market pricing in at $1149?

-30.0%

Market-Implied Owner Earnings Growth

Standard FCF implies -15.1%

The market implies -30.0% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -15.1%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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90/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Reinvestment Efficiency is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

LLY

73/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by roic consistency. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

Forensic Accounting

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-3.08

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

LLY

-1.83

Possible Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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Insiders 0.2%Institutions 93.2%Retail & Other 6.6%

No. of Institutional Holders1,429

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

LLY

Insiders 0.2%Institutions 85.1%Retail & Other 14.8%

No. of Institutional Holders5,685

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

LLY

Buys (3M)

Buys (12M)

Total value (12M): $4.54M

MONTARCE LUCAS E

Chief Financial Officer

$494,627

@ $691.79 · 2025-08-15

ALVAREZ RALPH

Director

$500,473

@ $660.25 · 2025-08-13

VAN NAARDEN JACOB S.

Officer

$647,360

@ $647.36 · 2025-08-13

SULZBERGER GABRIELLE

Director

$75,018

@ $641.18 · 2025-08-12

FYRWALD J. ERIK

Director

$1.01M

@ $642.33 · 2025-08-12

RICKS DAVID A

Chief Executive Officer

$1.05M

@ $644.77 · 2025-08-12

SKOVRONSKY DANIEL

Officer

$634,405

@ $634.40 · 2025-08-12

JACKSON JAMERE

Director

$127,913

@ $639.57 · 2025-08-08

Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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Sells (3M)

Sells (12M)

Total value (12M): $11.91M

MIELE LAURA KAREN

Officer

$517,517

@ $207.01 · 2026-07-15

MIELE LAURA KAREN

Officer

$507,762

@ $203.10 · 2026-06-15

KELLY ERIC CHARLES

Officer

$602,496

@ $200.83 · 2026-05-28

SCHATZ JACOB J

Officer

$1.01M

@ $201.19 · 2026-05-20

CANFIELD STUART

Chief Financial Officer

$302,040

@ $201.36 · 2026-05-20

MIELE LAURA KAREN

Officer

$501,344

@ $200.54 · 2026-05-15

MIELE LAURA KAREN

Officer

$508,026

@ $203.21 · 2026-04-15

MIELE LAURA KAREN

Officer

$499,884

@ $199.95 · 2026-03-16

CANFIELD STUART

Chief Financial Officer

$299,842

@ $199.89 · 2026-02-17

MIELE LAURA KAREN

Officer

$498,825

@ $199.53 · 2026-02-17

MIELE LAURA KAREN

Officer

$510,667

@ $204.27 · 2026-01-15

MIELE LAURA KAREN

Officer

$510,284

@ $204.11 · 2025-12-15

CANFIELD STUART

Chief Financial Officer

$302,475

@ $201.65 · 2025-11-20

MIELE LAURA KAREN

Officer

$502,643

@ $201.06 · 2025-11-17

KELLY ERIC CHARLES

Officer

$802,049

@ $200.51 · 2025-11-07

SCHATZ JACOB J

Officer

$240,961

@ $200.80 · 2025-10-15

MIELE LAURA KAREN

Officer

$504,477

@ $201.79 · 2025-10-01

CANFIELD STUART

Chief Financial Officer

$1.98M

@ $197.94 · 2025-09-29

SCHATZ JACOB J

Officer

$205,824

@ $171.52 · 2025-09-15

MIELE LAURA KAREN

Officer

$429,234

@ $171.69 · 2025-09-02

UBINAS LUIS A.

Director

$297,707

@ $170.51 · 2025-08-21

CANFIELD STUART

Chief Financial Officer

$171,059

@ $171.06 · 2025-08-20

SCHATZ JACOB J

Officer

$209,580

@ $174.65 · 2025-08-15

MIELE LAURA KAREN

Officer

$388,733

@ $155.49 · 2025-08-01

SCHATZ JACOB J

Officer

$222,486

@ $148.32 · 2025-07-15

MIELE LAURA KAREN

Officer

$398,744

@ $159.50 · 2025-07-01

SCHATZ JACOB J

Officer

$223,035

@ $148.69 · 2025-06-16

MIELE LAURA KAREN

President

$363,803

@ $145.52 · 2025-06-02

CANFIELD STUART

Chief Financial Officer

$151,320

@ $151.32 · 2025-05-20

KELLY ERIC CHARLES

Officer

$302,090

@ $151.04 · 2025-05-16

SCHATZ JACOB J

Officer

$224,462

@ $149.64 · 2025-05-15

MIELE LAURA KAREN

Officer

$388,929

@ $155.57 · 2025-05-08

SCHATZ JACOB J

Officer

$218,468

@ $145.65 · 2025-04-15

MIELE LAURA KAREN

Officer

$362,764

@ $145.11 · 2025-04-01

SCHATZ JACOB J

Officer

$208,470

@ $138.98 · 2025-03-17

MIELE LAURA KAREN

Officer

$325,837

@ $130.33 · 2025-03-03

CANFIELD STUART

Chief Financial Officer

$130,108

@ $130.11 · 2025-02-20

SCHATZ JACOB J

Officer

$192,900

@ $128.60 · 2025-02-18

MIELE LAURA KAREN

Officer

$327,078

@ $130.83 · 2025-02-06

SCHATZ JACOB J

Officer

$215,175

@ $143.45 · 2025-01-15

MIELE LAURA KAREN

Officer

$365,371

@ $146.15 · 2025-01-02

CANFIELD STUART

Chief Financial Officer

$148,180

@ $148.18 · 2024-12-26

SCHATZ JACOB J

Officer

$234,409

@ $156.27 · 2024-12-16

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

LLY

Sells (3M)

Sells (12M)

Total value (12M): $3.63B

YUFFA ILYA

Officer

$2.88M

@ $1150.77 · 2026-06-10

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$15.75M

@ $995.36 · 2026-05-06

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$322.38M

@ $1103.48 · 2026-01-07

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$1.51M

@ $1085.01 · 2026-01-05

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$3.90M

@ $1085.04 · 2025-12-29

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$2.85M

@ $1085.17 · 2025-12-24

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$260,409

@ $1085.04 · 2025-12-23

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$161.08M

@ $1095.35 · 2025-11-25

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$17.34M

@ $1109.30 · 2025-11-25

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$152.06M

@ $1068.52 · 2025-11-24

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$111.50M

@ $1058.66 · 2025-11-21

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$39.07M

@ $1051.66 · 2025-11-20

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$176.10M

@ $1051.17 · 2025-11-19

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$62.31M

@ $1034.78 · 2025-11-18

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$10.19M

@ $1030.68 · 2025-11-17

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$183.80M

@ $1030.87 · 2025-11-14

ZAKROWSKI DONALD A

Officer

$1.01M

@ $1010.50 · 2025-11-13

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$48.02M

@ $1030.26 · 2025-11-13

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$308.41M

@ $1011.18 · 2025-11-12

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$279.35M

@ $986.64 · 2025-11-11

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$16.41M

@ $972.52 · 2025-11-10

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$167.09M

@ $933.26 · 2025-11-05

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$38.47M

@ $951.56 · 2025-11-05

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$479,038

@ $910.72 · 2025-11-04

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$266.65M

@ $888.83 · 2025-11-03

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$260.17M

@ $863.35 · 2025-10-31

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$3.16M

@ $863.24 · 2025-10-10

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$9.04M

@ $852.49 · 2025-10-09

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$86.23M

@ $850.27 · 2025-10-08

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$22.72M

@ $848.01 · 2025-10-07

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$137.04M

@ $850.22 · 2025-10-06

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$161.22M

@ $837.93 · 2025-10-03

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$92.50M

@ $821.55 · 2025-10-02

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$107.36M

@ $794.15 · 2025-10-01

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$177.29M

@ $821.47 · 2025-10-01

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$86.79M

@ $763.39 · 2025-09-30

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$18.06M

@ $763.09 · 2025-09-19

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$81.53M

@ $764.65 · 2025-09-18

ZAKROWSKI DONALD A

Officer

$734,930

@ $734.93 · 2025-08-28

YUFFA ILYA

Officer

$783,762

@ $627.01 · 2025-08-11

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$225.42M

@ $805.07 · 2025-07-24

ZAKROWSKI DONALD A

Officer

$716,410

@ $716.41 · 2025-05-27

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

Learn more →

😏Greed(77/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

LLY

😐Neutral(59/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (77)

LLY

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (59)

View EA Full Analysis View LLY Full Analysis

Frequently Asked Questions: EA vs LLY

Is Electronic Arts Inc. or Eli Lilly and Company more undervalued in 2026?▼

Based on our discounted cash flow model, LLY trades at a 100.0% margin of safety (intrinsic value $1529604356065 vs. price $1149), compared to EA's -126.9% margin of safety (intrinsic $92 vs. $210).

Which stock has a wider economic moat, Electronic Arts Inc. or Eli Lilly and Company?▼

EA scores 90/100 (Wide moat), while LLY scores 73/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Eli Lilly and Company in financial distress?▼

LLY's Altman Z-Score of 2.0 places it in the Grey zone, signaling elevated bankruptcy risk. EA scores 6.5 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Electronic Arts Inc. or Eli Lilly and Company?▼

LLY earns 37.8% ROIC versus EA's 16.6%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Electronic Arts Inc.'s or Eli Lilly and Company's?▼

EA's dividend earns a safety score of 85/100 (Very Safe), compared to LLY's 64/100 (Safe). EA has raised its dividend for 0 consecutive years.