Ligand Pharmaceuticals Incorporated (LGND) vs Praxis Precision Medicines, Inc. (PRAX)

Ligand Pharmaceuticals Incorporated and Praxis Precision Medicines, Inc. are both Biotechnology companies. Praxis Precision Medicines, Inc. is the larger, with a market value of $6.9B against $6.0B — 1.2× the size. Praxis Precision Medicines, Inc. has negative trailing earnings, so its P/E is not meaningful; Ligand Pharmaceuticals Incorporated trades at 29.5×. Praxis Precision Medicines, Inc. grew revenue faster over the last twelve months: 249.5% against 54.9%. Ligand Pharmaceuticals Incorporated has the higher net margin (67.9% vs 0.00%) and the higher return on invested capital (8.19% vs −40.6%). Across the 17 metrics below, Ligand Pharmaceuticals Incorporated leads on 13 and Praxis Precision Medicines, Inc. on 4.

Valuation

Metric LGND PRAX Biotechnology median
P/E 29.52 n/m 8.50
P/S 20.41 823.42 9.71
P/B 6.13 5.25 2.13
Price to free cash flow 41.36 n/m 20.82
EV/EBITDA 46.38 n/m 0.64
EV/Sales 19.83 734.73 9.21
Earnings yield 3.39% (5.35%) (33.15%)
Free cash flow yield 2.42% (4.35%) (25.50%)

Profitability

Metric LGND PRAX Biotechnology median
Gross margin 95.43% 100.00% 65.16%
Operating margin 32.61% 0.00% 0.00%
Net margin 67.88% 0.00% 0.00%
Free cash flow margin 49.34% 0.00% 0.00%
Return on equity 21.96% (38.86%) (56.36%)
Return on assets 12.58% (36.80%) (48.04%)
Return on invested capital 8.19% (40.58%) 0.00%

Growth

Metric LGND PRAX Biotechnology median
Revenue growth (TTM) 54.89% 249.53% 6.02%
EPS growth (last fiscal year) 2,886.36% (32.03%) 30.26%
Revenue growth, 5-year CAGR 10.39% — 9.41%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LGND PRAX Biotechnology median
Debt to equity 1.16 0.00 0.00
Current ratio 31.18 15.73 4.72
Net debt to EBITDA (4.36) 1.82 0.96

Dividend

Metric LGND PRAX Biotechnology median
Dividend yield — — 0.09%
Payout ratio — — —

Size

Metric LGND PRAX Biotechnology median
Market cap 5.95b 6.93b 135.18m

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