Axsome Therapeutics, Inc. (AXSM) vs Ligand Pharmaceuticals Incorporated (LGND)

Axsome Therapeutics, Inc. and Ligand Pharmaceuticals Incorporated are both Biotechnology companies. Axsome Therapeutics, Inc. is the larger, with a market value of $6.8B against $6.0B — 1.1× the size. Axsome Therapeutics, Inc. has negative trailing earnings, so its P/E is not meaningful; Ligand Pharmaceuticals Incorporated trades at 116×. Axsome Therapeutics, Inc. grew revenue faster over the last twelve months: 54.2% against 1.03%. Ligand Pharmaceuticals Incorporated has the higher net margin (20.3% vs −18.2%) and the higher return on invested capital (1.27% vs 0.00%). Across the 17 metrics below, Ligand Pharmaceuticals Incorporated leads on 13 and Axsome Therapeutics, Inc. on 4.

Valuation

Metric AXSM LGND Biotechnology median
P/E n/m 115.97 10.26
P/S 7.83 23.62 9.18
P/B 64.25 6.23 2.05
Price to free cash flow n/m 58.00 24.81
EV/EBITDA n/m 109.42 0.65
EV/Sales 7.61 24.72 8.98
Earnings yield (2.37%) 0.86% (34.89%)
Free cash flow yield (1.22%) 1.72% (24.52%)

Profitability

Metric AXSM LGND Biotechnology median
Gross margin 93.25% 95.22% 65.16%
Operating margin (17.45%) 9.29% 0.00%
Net margin (18.18%) 20.27% 0.00%
Free cash flow margin (9.55%) 31.43% 0.00%
Return on equity (175.59%) 5.38% (50.12%)
Return on assets (21.03%) 2.77% (45.60%)
Return on invested capital 0.00% 1.27% 0.00%

Growth

Metric AXSM LGND Biotechnology median
Revenue growth (TTM) 54.16% 1.03% 6.26%
EPS growth (last fiscal year) 38.56% 2,886.36% 29.88%
Revenue growth, 5-year CAGR — 10.39% 9.75%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AXSM LGND Biotechnology median
Debt to equity 1.21 0.71 0.00
Current ratio 1.42 1.22 4.89
Net debt to EBITDA 1.29 (4.36) 1.01

Dividend

Metric AXSM LGND Biotechnology median
Dividend yield — — 0.41%
Payout ratio — — —

Size

Metric AXSM LGND Biotechnology median
Market cap 6.83b 5.98b 172.11m

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