Ligand Pharmaceuticals Incorporated (LGND) vs Travere Therapeutics, Inc. (TVTX)

Ligand Pharmaceuticals Incorporated and Travere Therapeutics, Inc. are both Biotechnology companies. Ligand Pharmaceuticals Incorporated and Travere Therapeutics, Inc. are of similar size ($6.1B and $5.7B). Travere Therapeutics, Inc. has negative trailing earnings, so its P/E is not meaningful; Ligand Pharmaceuticals Incorporated trades at 30.1×. Travere Therapeutics, Inc. grew revenue faster over the last twelve months: 77.1% against 54.9%. Ligand Pharmaceuticals Incorporated has the higher net margin (67.9% vs −7.35%) and the higher return on invested capital (8.19% vs −18.3%). Across the 20 metrics below, Ligand Pharmaceuticals Incorporated leads on 15 and Travere Therapeutics, Inc. on 5.

Valuation

Metric LGND TVTX Biotechnology median
P/E 30.12 n/m 7.88
P/S 20.82 9.40 11.47
P/B 6.25 226.59 2.52
Price to free cash flow 42.20 383.94 21.16
EV/EBITDA 46.73 281.89 0.74
EV/Sales 19.98 9.59 10.73
Earnings yield 3.32% (0.76%) (28.84%)
Free cash flow yield 2.37% 0.26% (23.03%)

Profitability

Metric LGND TVTX Biotechnology median
Gross margin 95.43% 98.60% 65.16%
Operating margin 32.61% (6.84%) 0.00%
Net margin 67.88% (7.35%) 0.00%
Free cash flow margin 49.34% 2.56% 0.00%
Return on equity 21.96% (151.79%) (57.72%)
Return on assets 12.58% (6.42%) (49.22%)
Return on invested capital 8.19% (18.31%) 0.00%

Growth

Metric LGND TVTX Biotechnology median
Revenue growth (TTM) 54.89% 77.12% 5.64%
EPS growth (last fiscal year) 2,886.36% 92.89% —
Revenue growth, 5-year CAGR 10.39% 19.87% 8.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LGND TVTX Biotechnology median
Debt to equity 1.16 24.58 0.00
Current ratio 31.18 4.05 4.73
Net debt to EBITDA (4.36) 2.27 0.96

Dividend

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

Size

Metric LGND TVTX Biotechnology median
Market cap 6.09b 5.66b 162.10m

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