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LGND vs MRK

LGND
Ligand Pharmaceuticals Incorporated
NEUTRAL
Price
$204.92
Market Cap
$4.09B
Sector
Healthcare
AI Confidence
85%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
LGND
33.43
MRK
16.66
Forward P/E
LGND
20.7
MRK
12.42
P/B Ratio
LGND
3.98
MRK
5.7
P/S Ratio
LGND
15.24
MRK
4.61
EV/EBITDA
LGND
46.98
MRK
11.46

Profitability

Gross Margin
LGND
64.29%
MRK
77.21%
Operating Margin
LGND
33.59%
MRK
32.77%
Profit Margin
LGND
46.42%
MRK
28.08%
ROE
LGND
13.47%
MRK
36.88%
ROA
LGND
2.36%
MRK
12.04%

Growth

Revenue Growth
LGND
39.4%
MRK
5.0%
Earnings Growth
LGND
--
MRK
-19.3%

Financial Health

Debt/Equity
LGND
0.44
MRK
0.96
Current Ratio
LGND
22.23
MRK
1.54
Quick Ratio
LGND
21.83
MRK
0.96

Dividends

Dividend Yield
LGND
--
MRK
2.83%
Payout Ratio
LGND
0.0%
MRK
45.05%

AI Verdict

LGND NEUTRAL

LGND presents a dichotomy between exceptional operational profitability and poor deterministic health/value scores. While the company boasts a massive 46.42% profit margin and strong revenue growth (39.4%), the Piotroski F-Score of 3/9 indicates weak financial trend momentum. The stock is trading at a significant premium to its Graham Number ($84.23) and Intrinsic Value ($42.91), suggesting the market is pricing in aggressive future growth. Bearish insider activity and a weak technical trend further temper the outlook despite strong analyst target prices.

Strengths
Exceptional profit margins (46.42%) and gross margins (64.29%)
Strong top-line growth with 39.40% YoY revenue increase
Extremely high liquidity indicated by a Current Ratio of 22.23
Risks
Severe overvaluation relative to Graham and Intrinsic value benchmarks
Weak financial health trend as evidenced by a Piotroski F-Score of 3/9
Bearish insider sentiment with 9 sell transactions and 0 buys
MRK NEUTRAL

MRK shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.1% margin)
Strong ROE of 36.9%
Risks
Premium vs Graham Number ($59.01)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

LGND vs MRK: Head-to-Head Comparison

This page compares Ligand Pharmaceuticals Incorporated (LGND) and Merck & Co., Inc. (MRK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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