Ligand Pharmaceuticals Incorporated (LGND) vs Scholar Rock Holding Corporation (SRRK)

Ligand Pharmaceuticals Incorporated and Scholar Rock Holding Corporation are both Biotechnology companies. Ligand Pharmaceuticals Incorporated and Scholar Rock Holding Corporation are of similar size ($6.1B and $6.0B). Scholar Rock Holding Corporation has negative trailing earnings, so its P/E is not meaningful; Ligand Pharmaceuticals Incorporated trades at 30.1×. Scholar Rock Holding Corporation grew revenue faster over the last twelve months: 213.7% 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 0.00%). Across the 17 metrics below, Ligand Pharmaceuticals Incorporated leads on 15 and Scholar Rock Holding Corporation on 2.

Valuation

Metric LGND SRRK Biotechnology median
P/E 30.12 n/m 7.88
P/S 20.82 134.64 11.47
P/B 6.25 25.09 2.52
Price to free cash flow 42.20 n/m 21.16
EV/EBITDA 46.73 n/m 0.74
EV/Sales 19.98 128.39 10.73
Earnings yield 3.32% (7.08%) (28.84%)
Free cash flow yield 2.37% (4.66%) (23.03%)

Profitability

Metric LGND SRRK Biotechnology median
Gross margin 95.43% 0.00% 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% (167.77%) (57.72%)
Return on assets 12.58% (94.63%) (49.22%)
Return on invested capital 8.19% 0.00% 0.00%

Growth

Metric LGND SRRK Biotechnology median
Revenue growth (TTM) 54.89% 213.65% 5.64%
EPS growth (last fiscal year) 2,886.36% (33.20%) —
Revenue growth, 5-year CAGR 10.39% — 8.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LGND SRRK Biotechnology median
Debt to equity 1.16 0.77 0.00
Current ratio 31.18 7.02 4.73
Net debt to EBITDA (4.36) 0.69 0.96

Dividend

Metric LGND SRRK Biotechnology median
Dividend yield 2.04% — 2.10%
Payout ratio 0.00 0.00 0.00

Size

Metric LGND SRRK Biotechnology median
Market cap 6.09b 5.96b 162.10m

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