Ligand Pharmaceuticals Incorporated (LGND) vs Mirum Pharmaceuticals, Inc. (MIRM)

Ligand Pharmaceuticals Incorporated and Mirum Pharmaceuticals, Inc. are both Biotechnology companies. Ligand Pharmaceuticals Incorporated and Mirum Pharmaceuticals, Inc. are of similar size ($6.1B and $6.0B). Mirum Pharmaceuticals, Inc. has negative trailing earnings, so its P/E is not meaningful; Ligand Pharmaceuticals Incorporated trades at 116×. Mirum Pharmaceuticals, Inc. grew revenue faster over the last twelve months: 42.2% against 1.03%. Ligand Pharmaceuticals Incorporated has the higher net margin (20.3% vs −134.8%) and the higher return on invested capital (1.27% vs −184.7%). Across the 16 metrics below, Ligand Pharmaceuticals Incorporated leads on 10 and Mirum Pharmaceuticals, Inc. on 6.

Valuation

Metric LGND MIRM Biotechnology median
P/E 115.97 n/m 10.26
P/S 23.62 9.18 9.18
P/B 6.23 n/m 2.05
Price to free cash flow 58.00 n/m 24.81
EV/EBITDA 109.42 n/m 0.65
EV/Sales 24.72 9.72 8.98
Earnings yield 0.86% (16.19%) (34.89%)
Free cash flow yield 1.72% (5.01%) (24.52%)

Profitability

Metric LGND MIRM Biotechnology median
Gross margin 95.22% 81.72% 65.16%
Operating margin 9.29% (133.62%) 0.00%
Net margin 20.27% (134.75%) 0.00%
Free cash flow margin 31.43% (46.04%) 0.00%
Return on equity 5.38% (760.01%) (50.12%)
Return on assets 2.77% (99.78%) (45.60%)
Return on invested capital 1.27% (184.65%) 0.00%

Growth

Metric LGND MIRM Biotechnology median
Revenue growth (TTM) 1.03% 42.18% 6.26%
EPS growth (last fiscal year) 2,886.36% 74.59% 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 LGND MIRM Biotechnology median
Debt to equity 0.71 (13.50) 0.00
Current ratio 1.22 2.07 4.89
Net debt to EBITDA (4.36) (19.11) 1.01

Dividend

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

Size

Metric LGND MIRM Biotechnology median
Market cap 5.98b 6.11b 172.11m

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