WallStSmart

Ligand Pharmaceuticals Incorporated (LGND)vsEli Lilly and Company (LLY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 29659% more annual revenue ($86.46B vs $290.54M). LGND leads profitability with a 67.9% profit margin vs 31.9%. LLY appears more attractively valued with a PEG of 1.36. LLY earns a higher WallStSmart Score of 74/100 (B).

LGND

Strong Buy

67

out of 100

Grade: B-

Growth: 9.3Profit: 7.5Value: 4.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.79

LLY

Strong Buy

74

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LGNDOvervalued (-6.3%)

Margin of Safety

-6.3%

Fair Value

$174.97

Current Price

$307.02

$132.05 premium

UndervaluedFair: $174.97Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LGND3 strengths · Avg: 10.0/10
Profit MarginProfitability
67.9%10/10

Keeps 68 of every $100 in revenue as profit

Revenue GrowthGrowth
33.7%10/10

Revenue surging 33.7% year-over-year

EPS GrowthGrowth
825.0%10/10

Earnings expanding 825.0% YoY

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$1.26T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
53.7%10/10

Strong operational efficiency at 53.7%

Revenue GrowthGrowth
38.6%10/10

Revenue surging 38.6% year-over-year

Free Cash FlowQuality
$7.76B8/10

Generating 7.8B in free cash flow

Areas to Watch

LGND3 concerns · Avg: 3.7/10
PEG RatioValuation
1.534/10

Expensive relative to growth rate

P/E RatioValuation
33.4x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.173/10

Elevated debt levels

LLY3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.623/10

Elevated debt levels

P/E RatioValuation
46.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
31.2x2/10

Trading at 31.2x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : LGND

The strongest argument for LGND centers on Profit Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 67.9% and operating margin at 13.5%. Revenue growth of 33.7% demonstrates continued momentum.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.9% and operating margin at 53.7%. Revenue growth of 38.6% demonstrates continued momentum.

Bear Case : LGND

The primary concerns for LGND are PEG Ratio, P/E Ratio, Debt/Equity.

Bear Case : LLY

The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 46.0x leaves little room for execution misses. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

LGND carries more volatility with a beta of 1.01 — expect wider price swings.

LLY is growing revenue faster at 38.6% — sustainability is the question.

LLY generates stronger free cash flow (7.8B), providing more financial flexibility.

Monitor BIOTECHNOLOGY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LLY scores higher overall (74/100 vs 67/100), backed by strong 31.9% margins and 38.6% revenue growth. Both earn "Strong Buy" and "Strong Buy" 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.

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Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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