Amgen vs. Eli Lilly: Does the GLP-1 Mania Make LLY Stock a Better Buy in 2026?

Are you looking for a stable dividend payer or a high-growth medical innovator? Choosing between Amgen (NASDAQ:AMGN) and Eli Lilly & Co. (NYSE:LLY) depends on your specific goals for 2026.

Amgen operates as a mature biotechnology leader focused on cost-efficient manufacturing and specialty drugs. Eli Lilly & Co. has recently transformed into a growth powerhouse through its breakthrough obesity and diabetes treatments. Both companies command significant market share, but their financial profiles and valuation multiples suggest very different paths for potential investors.

The case for Amgen

Amgen discovers and manufactures innovative medicines for serious illnesses, focusing on oncology, inflammation, and rare diseases. It distributes its products primarily through large wholesalers like McKesson Corp. (NYSE:MCK), Cencora (NYSE:COR), and Cardinal Health (NYSE:CAH). Customer concentration like this adds a layer of risk to the business, as these three entities account for a significant portion of its total revenue.

According to its latest annual report covering FY 2025, revenue reached about $36.7 billion, representing growth of approximately 10% compared to the prior year. The company reported net income of roughly $7.7 billion for the same period. This resulted in a net margin of 21%, which measures the percentage of revenue remaining as profit after all expenses are paid.

As of its December 2025 balance sheet, the debt-to-equity ratio was nearly 6.3x, which measures total debt against shareholder equity and indicates reliance on borrowed funds. Its current ratio, which compares short-term assets to short-term liabilities, was approximately 1.1x. Free cash flow for FY 2025 was about $8.1 billion, calculated by subtracting capital expenditures from operating cash flow.

The case for Eli Lilly & Co.

Eli Lilly & Co. operates as a global leader among pharmaceutical stocks with a heavy emphasis on cardiometabolic health and immunology. Like its peer, it relies on major distributors including McKesson, Cencora, and Cardinal Health to reach patients. The company has also pioneered direct-to-patient fulfillment through its LillyDirect platform to improve access to its popular incretin-based medications.

In FY 2025, revenue reached roughly $65.2 billion, fueled by a massive 45% increase in year-over-year sales. Net income for the fiscal year was about $20.6 billion. The company achieved a net margin of approximately 32%, reflecting the high demand for its newest therapeutic offerings.

As of its December 2025 balance sheet, the debt-to-equity ratio was close to 1.6x. Its current ratio was approximately 1.6x, suggesting a comfortable cushion to cover its short-term financial obligations. Free cash flow for FY 2025 reached nearly $9.0 billion, providing substantial capital to reinvest in research and development or potential acquisitions.

Risk profile comparison

Amgen faces extensive pressure from government and commercial payers regarding drug pricing and reimbursement under various pricing agreements. Its manufacturing operations rely heavily on specific facilities in Puerto Rico and California, making the supply chain vulnerable to natural disasters. Furthermore, the company must contend with the expiration of patents for key drugs like Prolia, which opens the door for competitors to launch lower-cost versions.

Eli Lilly & Co. is under intense scrutiny from international authorities over drug pricing structures and rebate agreements. The company must also manage the complex challenge of expanding manufacturing capacity to meet the overwhelming demand for its weight-loss treatments. Additionally, patents for major products such as Trulicity are approaching expiration, which could lead to increased competition from biosimilars in the near future.

Valuation comparison

Amgen offers a more conservative entry point based on its lower Forward P/E, while Eli Lilly & Co. carries a higher valuation reflecting its rapid growth. The P/S ratio measures the market's valuation of the company relative to its sales over the past twelve months.

Valuation metrics are sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Amgen is not a fast-growing company by sales, as reflected in its ratios in the table above. Given its scale, it should be able to achieve a roughly 3% revenue increase in 2026, to around $37.8 billion. But size forgives a lot in pharmaceuticals. For one, its billions in net income could enable Amgen to pursue future growth by acquiring other drugmakers. The business also has six drug franchises that generate $1 billion-plus in annual revenue. There is real value there.

Eli Lilly & Co., meanwhile, is perhaps the fastest-growing pharmaceutical stock around, with a massive jump in sales last year.

Eli Lilly is riding a wave of success with its GLP-1 drugs Zepbound for weight loss and Mounjaro, which is the same drug for diabetes control. There is still plenty of growth left in the treatment, and that is expected to power revenue up more than a third in 2026, to $88.7 billion, with close to $31 billion in net income. Its next weight-loss drug, Retatrutide, is hotly anticipated for its triple-agonist approach, which is expected to exceed the weight-loss results of Zepbound. The company is also targeting less affluent customers with a lower-cost GLP pill called Foundayo, which it sells directly to consumers.

Besides GLP-1s, Lilly is working on a small interfering RNA therapeutic targeting lipoprotein(a) for the prevention of atherosclerotic cardiovascular disease in patients with elevated lipoprotein(a) levels. Analysts believe it will be a blockbuster ($1 billion or more in lifetime revenue) if approved.

Lilly shares come at a premium, but that is buying into future growth, which appears unabated, at least for the foreseeable future. Long-term investors should be willing to pay up for Eli Lilly and enjoy the many years of growth ahead.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amgen and Eli Lilly. The Motley Fool recommends McKesson. The Motley Fool has a disclosure policy.