Comparative Analysis of Eli Lilly and Abbvie Stocks

Umm e Farwa

Bachelor's thesis

Abstract:

This thesis focuses on discovering which pharmaceutical company has the best potential in 2023-2024. The author considers two giants from the pharmaceutical industry – Abbvie and Eli Lilly and conducts a comparative analysis to come up with the decision of which stock is most preferred for investments made into the stock exchange market and pharmaceuticals industry. Quantitative methods represent the core of the thesis, where techniques of correlation analysis, trend analysis and valuation ratios are being calculated and processed. In addition to all mentioned earlier, the thesis also incorporates a DDM model to identify if those companies’ stocks are undervalued or overvalued. It was concluded that both stocks have had a really good performance over the period of the last five years having positive returns and being relatively undervalued. It is suggested that Eli Lilly is somewhat more beneficial than AbbVie, but the portfolio diversification where a particular minoritarian amount will be allocated to AbbVie is likely to be the best strategy yielding the most profitable and less risky results.

Keywords

NYSE, Eli Lilly, Abbvie, valuation, pharmaceuticals, financials, earnings, investment

Language used: English

Date on which the thesis was submitted / produced: 6. 4. 2024

Thesis defence

• Supervisor: doc. Ing. Petr Procházka, MSc Ph.D.
• Reader: Jan Kevin Mullen, Ing.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Business Administration