Ligand Pharmaceuticals Incorporated (LGND)vsNovartis AG ADR (NVS)
LGND
Ligand Pharmaceuticals Incorporated
$232.55
+0.11%
HEALTHCARE · Cap: $2.76B
NVS
Novartis AG ADR
$148.34
+1.95%
HEALTHCARE · Cap: $275.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 21004% more annual revenue ($56.58B vs $268.09M). LGND leads profitability with a 46.4% profit margin vs 23.9%. 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
NVS
Buy51
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
-52.0%
Fair Value
$109.95
Current Price
$148.34
$38.39 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 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
Expensive relative to growth rate
Revenue declined 0.7%
Earnings declined 9.3%
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 : 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, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
LGND profiles as a growth stock while NVS is a declining 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.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
LGND scores higher overall (71/100 vs 51/100), 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 →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
Want to dig deeper into these stocks?