Ligand Pharmaceuticals (NASDAQ: LGND) and CTI BioPharma Corp. (NASDAQ:CTIC) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.
This is a summary of recent ratings and price targets for Ligand Pharmaceuticals and CTI BioPharma Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CTI BioPharma Corp.||0||0||1||0||3.00|
Ligand Pharmaceuticals presently has a consensus price target of $133.25, indicating a potential downside of 6.95%. CTI BioPharma Corp. has a consensus price target of $7.50, indicating a potential upside of 129.36%. Given CTI BioPharma Corp.’s stronger consensus rating and higher probable upside, analysts clearly believe CTI BioPharma Corp. is more favorable than Ligand Pharmaceuticals.
Volatility and Risk
Ligand Pharmaceuticals has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, CTI BioPharma Corp. has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
Earnings and Valuation
This table compares Ligand Pharmaceuticals and CTI BioPharma Corp.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ligand Pharmaceuticals||$117.07 million||25.75||$60.55 million||$0.36||397.82|
|CTI BioPharma Corp.||$36.55 million||2.84||-$50.38 million||($1.91)||-1.71|
Ligand Pharmaceuticals has higher revenue and earnings than CTI BioPharma Corp.. CTI BioPharma Corp. is trading at a lower price-to-earnings ratio than Ligand Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
This table compares Ligand Pharmaceuticals and CTI BioPharma Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CTI BioPharma Corp.||-136.76%||-418.99%||-73.69%|
Institutional & Insider Ownership
42.9% of CTI BioPharma Corp. shares are owned by institutional investors. 14.7% of Ligand Pharmaceuticals shares are owned by company insiders. Comparatively, 8.1% of CTI BioPharma Corp. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Ligand Pharmaceuticals beats CTI BioPharma Corp. on 10 of the 13 factors compared between the two stocks.
About Ligand Pharmaceuticals
Ligand Pharmaceuticals Incorporated (Ligand) is a biopharmaceutical company that focuses on developing and acquiring technologies that help pharmaceutical companies discover and develop medicines. The Company is involved in the development and licensing of biopharmaceutical assets. The Company employs research technologies, such as nuclear receptor assays, high throughput computer screening, formulation science, liver targeted pro-drug technologies and antibody discovery technologies to assist companies in their work toward obtaining prescription drug approvals. As of December 31, 2016, it had partnerships and license agreements with over 85 pharmaceutical and biotechnology companies, and over 140 various programs under license with it were in various stages of commercialization and development. It has contributed research and technologies for approved medicines that treat cancer, osteoporosis, fungal infections and low blood platelets, among others.
About CTI BioPharma Corp.
CTI BioPharma Corp. (CTI) is a biopharmaceutical company focused on the acquisition, development and commercialization of targeted therapies covering a spectrum of blood-related cancers to patients and healthcare providers. The Company is primarily focused on commercializing PIXUVRI in select countries in the European Union, for multiply relapsed or refractory aggressive B-cell non-Hodgkin lymphoma (NHL). It is also engaged in evaluating pacritinib for the treatment of adult patients with myelofibrosis. Its earlier stage product candidate, tosedostat, is an oral, once-daily aminopeptidase inhibitor that has demonstrated responses in patients with acute myeloid leukemia (AML). It also evaluates its pipeline candidate paclitaxel poliglumex (Opaxio), which targets solid tumors. It is evaluating Opaxio through cooperative group sponsored trials and investigator-sponsored trials (ISTs), such as the ongoing maintenance therapy trial in patients with ovarian cancer.
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