Ligand Pharmaceuticals Incorporated (LGND)vsNovartis AG ADR (NVS)
LGND
Ligand Pharmaceuticals Incorporated
$237.00
+0.46%
HEALTHCARE · Cap: $5.12B
NVS
Novartis AG ADR
$148.38
-2.52%
HEALTHCARE · Cap: $289.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 20513% more annual revenue ($56.58B vs $274.48M). LGND leads profitability with a 55.9% profit margin vs 23.9%. LGND appears more attractively valued with a PEG of 1.53. LGND earns a higher WallStSmart Score of 67/100 (B-).
LGND
Strong Buy67
out of 100
Grade: B-
NVS
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-15.9%
Fair Value
$160.49
Current Price
$237.00
$76.51 premium
Margin of Safety
-65.2%
Fair Value
$91.39
Current Price
$148.38
$56.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 56 of every $100 in revenue as profit
Strong operational efficiency at 33.6%
Earnings expanding 103.2% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : LGND
The strongest argument for LGND centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 55.9% and operating margin at 33.6%. Revenue growth of 14.1% demonstrates continued momentum.
Bull Case : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.9% and operating margin at 30.5%.
Bear Case : LGND
The primary concerns for LGND are PEG Ratio, P/E Ratio.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
LGND profiles as a mature stock while NVS is a declining play — different risk/reward profiles.
LGND carries more volatility with a beta of 1.04 — expect wider price swings.
LGND is growing revenue faster at 14.1% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
LGND scores higher overall (67/100 vs 49/100), backed by strong 55.9% margins and 14.1% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ligand Pharmaceuticals Incorporated
HEALTHCARE · BIOTECHNOLOGY · USA
Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, focuses on developing or acquiring technologies that help pharmaceutical companies discover and develop drugs globally. The company is headquartered in San Diego, California.
Visit Website →Novartis AG ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.
Visit Website →Compare with Other BIOTECHNOLOGY Stocks
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