Ligand Pharmaceuticals Incorporated (LGND)vsMerck & Company Inc (MRK)
LGND
Ligand Pharmaceuticals Incorporated
$232.55
+0.11%
HEALTHCARE · Cap: $2.76B
MRK
Merck & Company Inc
$113.56
+0.36%
HEALTHCARE · Cap: $277.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 24432% more annual revenue ($65.77B vs $268.09M). LGND leads profitability with a 46.4% profit margin vs 13.6%. LGND appears more attractively valued with a PEG of 1.53. LGND earns a higher WallStSmart Score of 71/100 (B).
LGND
Strong Buy71
out of 100
Grade: B
MRK
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.7%
Fair Value
$272.20
Current Price
$232.55
$39.65 discount
Margin of Safety
-15.7%
Fair Value
$97.76
Current Price
$113.56
$15.80 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 46 of every $100 in revenue as profit
Strong operational efficiency at 33.6%
Revenue surging 39.4% year-over-year
Earnings expanding 103.2% YoY
Safe zone — low bankruptcy risk
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 38.1%
Generating 2.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
4.9% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : LGND
The strongest argument for LGND centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 46.4% and operating margin at 33.6%. Revenue growth of 39.4% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin.
Bear Case : LGND
The primary concerns for LGND are PEG Ratio, P/E Ratio.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
LGND profiles as a growth stock while MRK is a value play — different risk/reward profiles.
LGND carries more volatility with a beta of 1.00 — expect wider price swings.
LGND is growing revenue faster at 39.4% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
LGND scores higher overall (71/100 vs 53/100), backed by strong 46.4% margins and 39.4% revenue growth. Both earn "Strong Buy" and "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.
Visit Website →Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
Visit Website →Compare with Other BIOTECHNOLOGY Stocks
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