Ligand Pharmaceuticals Incorporated (LGND) vs Oruka Therapeutics, Inc. (ORKA)

Ligand Pharmaceuticals Incorporated and Oruka Therapeutics, Inc. are both Biotechnology companies. Ligand Pharmaceuticals Incorporated and Oruka Therapeutics, Inc. are of similar size ($6.4B and $6.0B). Oruka Therapeutics, Inc. has negative trailing earnings, so its P/E is not meaningful; Ligand Pharmaceuticals Incorporated trades at 116×. Ligand Pharmaceuticals Incorporated has the higher net margin (20.3% vs 0.00%) and the higher return on invested capital (1.27% vs −40.2%). Across the 14 metrics below, Ligand Pharmaceuticals Incorporated leads on 11 and Oruka Therapeutics, Inc. on 3.

Valuation

Metric LGND ORKA Biotechnology median
P/E 115.97 n/m 10.26
P/S 23.62 n/m 9.18
P/B 6.23 5.47 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 n/m 8.98
Earnings yield 0.86% (2.19%) (34.89%)
Free cash flow yield 1.72% (1.66%) (24.52%)

Profitability

Metric LGND ORKA Biotechnology median
Gross margin 95.22% 0.00% 65.16%
Operating margin 9.29% 0.00% 0.00%
Net margin 20.27% 0.00% 0.00%
Free cash flow margin 31.43% 0.00% 0.00%
Return on equity 5.38% (18.30%) (50.12%)
Return on assets 2.77% (17.76%) (45.60%)
Return on invested capital 1.27% (40.22%) 0.00%

Growth

Metric LGND ORKA Biotechnology median
Revenue growth (TTM) 1.03% — 6.26%
EPS growth (last fiscal year) 2,886.36% 52.20% 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 ORKA Biotechnology median
Debt to equity 0.71 0.00 0.00
Current ratio 1.22 38.51 4.89
Net debt to EBITDA (4.36) 2.65 1.01

Dividend

Metric LGND ORKA Biotechnology median
Dividend yield — 0.00% 0.41%
Payout ratio — — —

Size

Metric LGND ORKA Biotechnology median
Market cap 5.98b 6.36b 172.11m

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