Compare Stocks › LLY vs WBD

Eli Lilly and Company (LLY) vs Warner Bros. Discovery Inc (WBD): 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%. WBD is undervalued at $31, with an intrinsic value of $505 and a margin of safety of 94%. Of the two, WBD has the wider margin of safety.

LLY

Eli Lilly and Company

$1417.54

WBD

Warner Bros. Discovery Inc

$30.95

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.

WBD

★FCF yield of 20.8% is historically attractive — the business generates significant cash relative to its price.

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.

WBD

⚠PEG ratio of 55.18 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
⚠Altman Z-Score of 0.26 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
⚠12 insider sales totaling $81.9M with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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LLY

WBD

Valuation

$9.34B

Free Cash Flow

$16.17B

0.74%

FCF Yield

20.84%

46.01

Trailing P/E

N/A

28.66

Forward P/E

-1238.00

Quality & Moat

40.83%

ROIC

2.21%

86.02%

ROE

-8.79%

83.63%

Gross Margin

47.81%

1.36

PEG Ratio

55.18

Balance Sheet Safety

1.11

Net Debt / Equity

0.84

N/A

Interest Coverage

N/A

0.96

Net Debt / EBITDA

3.67

0.49%

Dividend Yield

0.00%

LLY: 6Ties: 1WBD: 4

LLYWBD

Historical Fundamentals

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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.

WBD

$1 Retained Earnings Test

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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

WBD

Not enough historical data to compute the retained earnings test.

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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LLY

17.1% Margin of Safety

Price is 17.1% below estimated fair value

Current Price: $1417.54

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $1709.89

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

WBD

93.9% Margin of Safety

Price is 93.9% below estimated fair value

Current Price: $30.95

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $504.67

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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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.

WBD

What growth rate is the market pricing in at $31?

-8.7%

Market-Implied Owner Earnings Growth

Standard FCF implies -7.9%

The market implies -8.7% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -7.9%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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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.

WBD

33/100

No Moat

70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Forensic Accounting

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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.

WBD

Insufficient data for Beneish M-Score calculation (requires 2+ years).

Ownership Breakdown

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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.

WBD

Insiders 4.1%Institutions 79.2%Retail & Other 16.6%

No. of Institutional Holders1,714

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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LLY

Buys (3M)

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

WBD

Buys (3M)

Buys (12M)

LEVY ANTON J

Director

$3.55M

@ $10.92 · 2025-08-12

DI PIAZZA SAMUEL A. JR.

Director

$197,918

@ $11.41 · 2025-03-03

ZEILER GERHARD

Officer

$535,920

@ $9.24 · 2024-11-11

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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LLY

Sells (3M)

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

WBD

Sells (3M)

Sells (12M)

Total value (12M): $355.90M

LOCKE LORI C

Officer

$819,005

@ $28.13 · 2026-09-14

FISHER RICHARD W.

Director

$188,002

@ $28.06 · 2026-09-11

LOWE KENNETH W

Director

$5.65M

@ $28.23 · 2026-09-10

GIRDWOOD AMY

Officer

$7.34M

@ $27.98 · 2026-09-09

LOWE KENNETH W

Director

$5.67M

@ $28.35 · 2026-09-03

LEVY ANTON J

Director

$9.65M

@ $28.39 · 2026-09-03

PERRETTE JEAN-BRIAC

Officer

$3.67M

@ $28.96 · 2026-08-27

ZASLAV DAVID M

Chief Executive Officer

$27.12M

@ $28.01 · 2026-08-14

MERCHANT FAZAL F

Director

$1.99M

@ $27.75 · 2026-08-13

FISHER RICHARD W.

Director

$549,200

@ $27.46 · 2026-08-12

LOWE KENNETH W

Director

$3.24M

@ $26.97 · 2026-08-11

ZEILER GERHARD

Officer

$15.99M

@ $27.05 · 2026-08-10

ZASLAV DAVID M

Chief Executive Officer

$59.47M

@ $27.22 · 2026-07-13

GOULD PAUL A

Director

$16.41M

@ $27.35 · 2026-03-16

MERCHANT FAZAL F

Director

$961,800

@ $27.48 · 2026-03-16

PERRETTE JEAN-BRIAC

Officer

$18.07M

@ $27.42 · 2026-03-16

AIYAR PRIYA

Officer

$2.75M

@ $27.85 · 2026-03-10

CAMPBELL BRUCE L

Officer

$1.16M

@ $27.82 · 2026-03-09

ZEILER GERHARD

Officer

$16.81M

@ $28.02 · 2026-03-04

WIEDENFELS GUNNAR

Chief Financial Officer

$27.95M

@ $28.17 · 2026-03-04

ZASLAV DAVID M

Chief Executive Officer

$113.16M

@ $28.26 · 2026-03-03

FISHER RICHARD W.

Director

$462,727

@ $28.31 · 2026-03-03

AIYAR PRIYA

Officer

$6.31M

@ $28.24 · 2026-03-03

GIRDWOOD AMY

Officer

$2.12M

@ $28.25 · 2026-03-03

LOCKE LORI C

Officer

$394,558

@ $27.94 · 2025-12-10

WIEDENFELS GUNNAR

Chief Financial Officer

$7.17M

@ $29.50 · 2025-12-10

LOCKE LORI C

Officer

$247,800

@ $24.78 · 2025-12-05

LOCKE LORI C

Officer

$360,850

@ $24.06 · 2025-12-03

LOCKE LORI C

Officer

$235,400

@ $23.54 · 2025-11-28

WIEDENFELS GUNNAR

Chief Financial Officer

$5.00M

@ $22.50 · 2025-10-31

WIEDENFELS GUNNAR

Chief Financial Officer

$10.35M

@ $19.50 · 2025-09-15

CAMPBELL BRUCE L

Officer

$7.47M

@ $17.00 · 2025-09-12

ZASLAV DAVID M

Chief Executive Officer

$30.08M

@ $11.73 · 2024-12-16

SIMS SAVALLE C

Officer

$2.09M

@ $12.36 · 2024-12-13

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

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LLY

😏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.

WBD

😏Greed(80/100)

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

Composite sentiment score based on 3 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

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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)

WBD

⚪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 (80)

View LLY Full Analysis View WBD Full Analysis

Frequently Asked Questions: LLY vs WBD

Is Eli Lilly and Company or Warner Bros. Discovery Inc more undervalued in 2026?▼

Based on our discounted cash flow model, WBD trades at a 93.9% margin of safety (intrinsic value $505 vs. price $31), 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 Warner Bros. Discovery Inc?▼

LLY scores 73/100 (Wide moat), while WBD scores 33/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Warner Bros. Discovery Inc in financial distress?▼

WBD's Altman Z-Score of 0.3 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 company has better free cash flow, Eli Lilly and Company or Warner Bros. Discovery Inc?▼

Warner Bros. Discovery Inc (WBD) generates a 20.8% free cash flow yield, compared to Eli Lilly and Company's 0.7%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Eli Lilly and Company or Warner Bros. Discovery Inc?▼

LLY earns 40.8% ROIC versus WBD's 2.2%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.