ZACKS·2025-10-09 15:16Core Insights - Eli Lilly (LLY) and AbbVie (ABBV) are prominent U.S. pharmaceutical companies with strong market positions in immunology, oncology, and neuroscience, alongside significant R&D pipelines and global reach [1][2] Company Performance - Lilly's success is driven by its GLP-1 drugs, Mounjaro and Zepbound, which account for approximately 50% of its total revenues, contributing to over 30% expected sales growth in 2025 [3][11] - AbbVie has successfully transitioned post-Humira loss of exclusivity (LOE) by launching new immunology drugs, Skyrizi and Rinvoq, which generated combined sales of $11.6 billion in the first half of 2025, with expectations of over $25 billion in 2025 [12][13] Growth Prospects - Lilly anticipates continued sales growth from its new drugs and expanded indications, with a projected revenue range of $60.0 billion to $62.0 billion in 2025, indicating over 30% year-over-year growth [6][32] - AbbVie expects to return to mid-single-digit revenue growth in 2025, driven by its ex-Humira platform, with a high single-digit CAGR through 2029 [31] Market Position and Valuation - Lilly's stock has risen 9.5% year-to-date, while AbbVie's stock has increased by 30.1%, outperforming the industry average of 7.8% [22] - From a valuation perspective, Lilly trades at a forward P/E ratio of 29.03, while AbbVie trades at 16.65, indicating that AbbVie may be more attractive from a valuation standpoint [23] Dividend Yield - AbbVie's dividend yield stands at 2.8%, significantly higher than Lilly's yield of around 0.7% [26] Analyst Sentiment - Both companies have a Zacks Rank of 3 (Hold), indicating a challenging choice between the two stocks, although Lilly is viewed as a better option for growth-oriented investors due to its robust pipeline and market cap of around $800 billion [29][33]