Eli Lilly vs Viking Therapeutics: Which GLP-1 Stock Is the Better Buy?

GLP-1 drugs are proving adjuvant for galore conditions, not conscionable value loss. In studies, they person shown they tin trim cardiovascular risk, slumber apnea, and adjacent curb addictions. They person the imaginable to genuinely alteration healthcare, and thus, the accidental present is significant.

Analysts astatine Grand View Research estimation that the planetary GLP-1 cause marketplace volition beryllium worthy much than $185 cardinal by 2033. That translates into a compounded yearly maturation complaint of 12.4% betwixt present and then, arsenic the marketplace was worthy $66.4 cardinal past year.

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A mates of stocks that are intriguing options successful the GLP-1 marketplace are Eli Lilly (NYSE: LLY) and Viking Therapeutics (NASDAQ: VKTX). The erstwhile is simply a heavyweight successful the healthcare sector, with a valuation close astir $1 trillion, and it's a rock-solid company. The second is overmuch smaller, but successful return, it whitethorn connection much upside. Which banal is the amended bargain if you privation to instrumentality vantage of the maturation opportunities successful GLP-1?

Eli Lilly is dominant, but its valuation is besides precocious

Eli Lilly is the astir invaluable healthcare banal today, owed to the awesome occurrence of its GLP-1 drugs, Mounjaro and Zepbound. They are generating billions successful gross for the concern and person resulted successful a important acceleration of Eli Lilly's maturation rate. In the past, it wouldn't person been uncommon to spot the company's maturation complaint successful azygous digits oregon lower. Now, however, it's firing connected each cylinders, and its maturation complaint was an awesome 56% during the archetypal 3 months of 2026, with its gross totaling $19.8 billion. Profits besides astir tripled, rising from $2.8 cardinal to $7.4 billion.

The company's incredibly beardown fundamentals marque it a compelling concern for semipermanent investors, particularly erstwhile you origin successful however good it's been doing successful the GLP-1 race. Mounjaro's income roseate by 125% successful Q1, and Zepbound roseate by 80%. This is with these drugs inactive being successful their reasonably aboriginal maturation stages. And yet, they combined for astir $13 cardinal successful gross this past quarter.

The lone existent drawback astir Eli Lilly banal these days is that it isn't cheap. It trades astatine 39 times its trailing earnings. A premium is justifiable for the maturation stock, fixed its awesome results; it's conscionable a substance of however overmuch is excessively much. By comparison, the mean banal connected the S&P 500 trades astatine 25 times its trailing earnings.