SafetyMargin.ioSafetyMargin.io
BlogWatchlistCompare
Compare Stocks › LLY vs TFC

Eli Lilly and Company (LLY) vs Truist Financial Corporation (TFC): Which Is the Better Buy in 2026?

As of 2026-11-01, LLY is fairly valued at $1418, with a DCF intrinsic value of $1710 and a margin of safety of 17%. TFC is undervalued at $49, with an intrinsic value of $76 and a margin of safety of 36%. Of the two, TFC has the wider margin of safety.

LLY
Eli Lilly and Company
$1417.54
VS
TFC
Truist Financial Corporation
$48.79

Rewards

LLY
  • ★Eli Lilly and Company has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 83.6% 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.
TFC

    Risks

    LLY
    • ⚠FCF yield of 0.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
    • ⚠Insiders have sold $10.0M worth of stock in the past 3 months — significant insider liquidation.
    TFC
    • ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
    • ⚠Truist Financial Corporation scores only 10/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
    • ⚠Altman Z-Score of 0.18 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

    Key Valuation Metrics

    Learn more →
    LLY
    TFC
    Valuation
    $9.34B
    Free Cash Flow
    N/A
    0.74%
    FCF Yield
    N/A
    46.01
    Trailing P/E
    12.57
    28.66
    Forward P/E
    9.93
    Quality & Moat
    40.83%
    ROIC
    5.23%
    86.02%
    ROE
    8.16%
    83.63%
    Gross Margin
    0.00%
    1.36
    PEG Ratio
    1.10
    Balance Sheet Safety
    1.11
    Net Debt / Equity
    N/A
    N/A
    Interest Coverage
    N/A
    0.96
    Net Debt / EBITDA
    N/A
    0.49%
    Dividend Yield
    4.26%
    LLY: 3Ties: 1TFC: 4
    LLYTFC

    Historical Fundamentals

    Learn more →
    LLY

    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.

    TFC

    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.

    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.

    $1 Retained Earnings Test

    Learn more →
    LLY
    $27.49
    created per $1 retained over 3 years
    Exceptional Value Creator
    Σ Retained
    $22.34B
    Δ Market Cap
    +$614.01B
    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
    TFC
    N/A
    Net losses over 3 years — test not applicable
    Company had negative cumulative retained earnings
    Σ Retained
    $-228.0M
    Δ Market Cap
    +$5.03B
    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

    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

    Learn more →
    LLY
    17.1% Margin of Safety
    Price is 17.1% below estimated fair value
    Current Price: $1417.54
    Fair Value: $1709.89
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    TFC
    35.7% Margin of Safety
    Price is 35.7% below estimated fair value
    Current Price: $48.79
    Fair Value: $75.93
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

    Learn more →
    LLY

    What growth rate is the market pricing in at $1418?

    +23.5%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +34.7%

    The market implies +23.5% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding +34.7%, reflecting heavy growth investment expected to generate future returns.

    TFC

    Requires positive FCF to compute implied growth rate.

    Economic Moat Score

    Learn more →
    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.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
    TFC
    10/100
    No Moat
    70+ Wide · 40-69 Narrow · <40 None

    No durable competitive advantage detected. The business shows limited evidence of pricing power, consistent returns, or capital efficiency.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

    Forensic Accounting

    Learn more →
    LLY
    -1.83
    Possible 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.
    TFC
    -2.41
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
    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.

    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.

    Ownership Breakdown

    Learn more →
    LLY
    Insiders 0.2%Institutions 85.5%Retail & Other 14.4%
    No. of Institutional Holders5,906
    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.
    TFC
    Insiders 0.2%Institutions 86.4%Retail & Other 13.4%
    No. of Institutional Holders2,128
    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.

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

    Insider Buying Activity

    Learn more →
    LLY
    0
    Buys (3M)
    0
    Buys (12M)
    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
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    TFC
    1
    Buys (3M)
    1
    Buys (12M)
    Total value (12M): $1.21M
    LYONS MICHAEL P
    Chief Executive Officer
    $1.21M
    @ $48.36 · 2026-10-28
    ROGERS WILLIAM H JR
    Chief Executive Officer
    $1.66M
    @ $48.56 · 2024-11-25
    Open market purchases · includes direct & indirect ownership · excludes option exercises

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

    Insider Selling Activity

    Learn more →
    LLY
    2
    Sells (3M)
    27
    Sells (12M)
    Total value (12M): $2.40B
    JONSSON PATRIK
    Officer
    $7.64M
    @ $1175.10 · 2026-08-17
    ZAKROWSKI DONALD A
    Officer
    $2.37M
    @ $1185.01 · 2026-08-10
    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
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $48.02M
    @ $1030.26 · 2025-11-13
    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
    $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
    $38.47M
    @ $951.56 · 2025-11-05
    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
    $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
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    TFC
    0
    Sells (3M)
    5
    Sells (12M)
    Total value (12M): $1.97M
    WILSON DONTA L
    Officer
    $688,618
    @ $51.85 · 2026-07-31
    BOYER K DAVID JR
    Director
    $202,090
    @ $50.70 · 2026-07-23
    POWELL CYNTHIA B
    Officer
    $183,715
    @ $52.49 · 2026-02-02
    MAGUIRE MICHAEL BARON
    Chief Financial Officer
    $651,664
    @ $50.13 · 2026-01-26
    BOYER K DAVID JR
    Director
    $239,682
    @ $46.45 · 2025-11-25
    BENDER BRADLEY D
    Officer
    $566,689
    @ $45.19 · 2025-07-22
    BOYER K DAVID JR
    Director
    $229,444
    @ $46.20 · 2024-12-04
    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 →
    LLY
    FearGreed
    😏Greed(73/100)

    "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.
    TFC
    FearGreed
    😐Neutral(57/100)

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

    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.

    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

    Learn more →
    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: Greed (73)
    TFC
    ⚪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 (57)
    View LLY Full AnalysisView TFC Full Analysis

    Frequently Asked Questions: LLY vs TFC

    Is Eli Lilly and Company or Truist Financial Corporation more undervalued in 2026?▼

    Based on our discounted cash flow model, TFC trades at a 35.7% margin of safety (intrinsic value $76 vs. price $49), compared to LLY's 17.1% margin of safety (intrinsic $1710 vs. $1418).

    Which stock has a wider economic moat, Eli Lilly and Company or Truist Financial Corporation?▼

    LLY scores 73/100 (Wide moat), while TFC scores 10/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is Truist Financial Corporation in financial distress?▼

    TFC's Altman Z-Score of 0.2 places it in the Distress zone, signaling elevated bankruptcy risk. LLY scores 8.7 (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, Eli Lilly and Company or Truist Financial Corporation?▼

    LLY earns 40.8% ROIC versus TFC's 5.2%. 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, Eli Lilly and Company's or Truist Financial Corporation's?▼

    TFC's dividend earns a safety score of 75/100 (Safe), compared to LLY's 64/100 (Safe). TFC has raised its dividend for 0 consecutive years.

    LLY vs TFC: Which Is the Better Buy in 2026? | SafetyMargin.io