Ligand Pharmaceuticals (NASDAQ: LGND) is one of 196 public companies in the “Biotechnology & Medical Research” industry, but how does it contrast to its rivals? We will compare Ligand Pharmaceuticals to similar companies based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.

Institutional and Insider Ownership

48.9% of shares of all “Biotechnology & Medical Research” companies are owned by institutional investors. 14.7% of Ligand Pharmaceuticals shares are owned by company insiders. Comparatively, 14.0% of shares of all “Biotechnology & Medical Research” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Ligand Pharmaceuticals and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ligand Pharmaceuticals $117.07 million $60.55 million 381.04
Ligand Pharmaceuticals Competitors $207.80 million -$2.20 million -0.21

Ligand Pharmaceuticals’ rivals have higher revenue, but lower earnings than Ligand Pharmaceuticals. Ligand Pharmaceuticals is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Ligand Pharmaceuticals has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Ligand Pharmaceuticals’ rivals have a beta of 1.63, indicating that their average stock price is 63% more volatile than the S&P 500.

Profitability

This table compares Ligand Pharmaceuticals and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ligand Pharmaceuticals 7.39% 5.05% 2.94%
Ligand Pharmaceuticals Competitors -4,011.43% -118.67% -44.00%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Ligand Pharmaceuticals and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ligand Pharmaceuticals 0 1 3 0 2.75
Ligand Pharmaceuticals Competitors 797 2965 6485 146 2.58

Ligand Pharmaceuticals currently has a consensus price target of $137.20, suggesting a potential upside of 0.02%. As a group, “Biotechnology & Medical Research” companies have a potential upside of 4.19%. Given Ligand Pharmaceuticals’ rivals higher possible upside, analysts clearly believe Ligand Pharmaceuticals has less favorable growth aspects than its rivals.

Summary

Ligand Pharmaceuticals beats its rivals on 8 of the 13 factors compared.

About Ligand Pharmaceuticals

Ligand Pharmaceuticals Incorporated (Ligand) is a biopharmaceutical company that focuses on developing and acquiring technologies that help pharmaceutical companies discover and develop medicines. The Company is involved in the development and licensing of biopharmaceutical assets. The Company employs research technologies, such as nuclear receptor assays, high throughput computer screening, formulation science, liver targeted pro-drug technologies and antibody discovery technologies to assist companies in their work toward obtaining prescription drug approvals. As of December 31, 2016, it had partnerships and license agreements with over 85 pharmaceutical and biotechnology companies, and over 140 various programs under license with it were in various stages of commercialization and development. It has contributed research and technologies for approved medicines that treat cancer, osteoporosis, fungal infections and low blood platelets, among others.

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