Comprehensive Stock Comparison
Compare Innoviva, Inc. (INVA) vs Ligand Pharmaceuticals Incorporated (LGND) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth |  LGND | 27.3% revenue growth vs INVA's 18.5% |
| Value |  INVA | Lower P/E (11.3x vs 23.8x) |
| Quality / Margins | INVA | 65.4% net margin vs LGND's 19.3% |
| Stability / Safety | INVA | Beta 0.07 vs LGND's 0.82 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | LGND | +75.3% vs INVA's +26.6% |
| Efficiency (ROA) | INVA | 16.6% ROA vs LGND's 3.3%, ROIC 16.8% vs -2.3% |
Who Each Stock Is For
Income & stability
INVADividend streak 0 yrs, beta 0.07
Growth exposure
INVARev growth 18.5%, EPS growth 8.2%, 3Y rev CAGR 8.7%
Long-term compounding (10Y)
LGND102.2% 10Y total return vs INVA's 85.1%
Sleep-well-at-night portfolio
INVALower volatility, beta 0.07, current ratio 14.64x
Defensive / Recession hedge
INVABeta 0.07, current ratio 14.64x
Business Model
What each company does and how it makes money
Innoviva is a biopharmaceutical company that develops and commercializes respiratory therapies for chronic obstructive pulmonary disease (COPD) and asthma. It generates revenue primarily through royalties and collaboration payments from its partnered respiratory drugs — including RELVAR/BREO ELLIPTA, ANORO ELLIPTA, and TRELEGY ELLIPTA — which are commercialized by GlaxoSmithKline. The company's key advantage lies in its long-term royalty streams from established respiratory products and its strategic partnership with a major pharmaceutical company for commercialization.
Ligand Pharmaceuticals is a biopharmaceutical company that develops and acquires drug discovery technologies and royalty-bearing assets for pharmaceutical partners. It generates revenue primarily through royalties from partnered drug sales — including blockbusters like Kyprolis and Veklury — supplemented by milestone payments and contract research services. Its key competitive advantage lies in its diversified portfolio of royalty streams and its Captisol drug formulation technology, which creates multiple revenue sources from single platform innovations.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
LGND 3INVA 2LGND4/6 metricsINVA5/6 metricsINVA6/8 metricsLGND4/6 metricsLGND1/1 metricsLGND leads in 3 of 6 categories (Financial Metrics, Total Returns). INVA leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
INVA is the larger business by revenue, generating $415M annually — 1.7x LGND's $251M. INVA is the more profitable business, keeping 65.4% of every revenue dollar as net income compared to LGND's 19.3%. On growth, LGND holds the edge at +122.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | INVAInnoviva, Inc. | LGNDLigand Pharmaceut… |
|---|---|---|
| RevenueTrailing 12 months | $415M | $251M |
| EBITDAEarnings before interest/tax | $13M | $52M |
| Net IncomeAfter-tax profit | $271M | $49M |
| Free Cash FlowCash after capex | $195M | $31M |
| Gross MarginGross profit ÷ Revenue | +78.9% | +85.9% |
| Operating MarginEBIT ÷ Revenue | -4.0% | +7.0% |
| Net MarginNet income ÷ Revenue | +65.4% | +19.3% |
| FCF MarginFCF ÷ Revenue | +46.9% | +12.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +28.6% | +122.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +7.1% | +15.6% |
Valuation Metrics
On an enterprise value basis, INVA's 5.4x EV/EBITDA is more attractive than LGND's 309.3x.
| Metric | INVAInnoviva, Inc. | LGNDLigand Pharmaceut… |
|---|---|---|
| Market CapShares × price | $1.7B | $4.0B |
| Enterprise ValueMkt cap + debt − cash | $1.1B | $3.9B |
| Trailing P/EPrice ÷ TTM EPS | 6.74x | -918.58x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.30x | 23.80x |
| PEG RatioP/E ÷ EPS growth rate | 0.65x | — |
| EV / EBITDAEnterprise value multiple | 5.44x | 309.27x |
| Price / SalesMarket cap ÷ Revenue | 3.91x | 23.77x |
| Price / BookPrice ÷ Book value/share | 1.61x | 4.45x |
| Price / FCFMarket cap ÷ FCF | 8.48x | 51.32x |
Profitability & Efficiency
INVA delivers a 23.1% return on equity — every $100 of shareholder capital generates $23 in annual profit, vs $5 for LGND. On the Piotroski fundamental quality scale (0–9), LGND scores 5/9 vs INVA's 4/9, reflecting solid financial health.
| Metric | INVAInnoviva, Inc. | LGNDLigand Pharmaceut… |
|---|---|---|
| ROE (TTM)Return on equity | +23.1% | +5.1% |
| ROA (TTM)Return on assets | +16.6% | +3.3% |
| ROICReturn on invested capital | +16.8% | -2.3% |
| ROCEReturn on capital employed | +12.4% | -2.7% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | — | 0.01x |
| Net DebtTotal debt minus cash | -$551M | -$65M |
| Cash & Equiv.Liquid assets | $551M | $72M |
| Total DebtShort + long-term debt | $0 | $7M |
| Interest CoverageEBIT ÷ Interest expense | 11.03x | 22.69x |
Total Returns (with DRIP)
A $10,000 investment in INVA five years ago would be worth $20,115 today (with dividends reinvested), compared to $14,261 for LGND. Over the past 12 months, LGND leads with a +75.3% total return vs INVA's +26.6%. The 3-year compound annual growth rate (CAGR) favors LGND at 41.4% vs INVA's 26.4% — a key indicator of consistent wealth creation.
| Metric | INVAInnoviva, Inc. | LGNDLigand Pharmaceut… |
|---|---|---|
| YTD ReturnYear-to-date | +12.0% | +6.3% |
| 1-Year ReturnPast 12 months | +26.6% | +75.3% |
| 3-Year ReturnCumulative with dividends | +101.9% | +182.6% |
| 5-Year ReturnCumulative with dividends | +101.2% | +42.6% |
| 10-Year ReturnCumulative with dividends | +85.1% | +102.2% |
| CAGR (3Y)Annualised 3-year return | +26.4% | +41.4% |
Risk & Volatility
INVA is the less volatile stock with a 0.07 beta — it tends to amplify market swings less than LGND's 0.82 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. LGND currently trades 95.1% from its 52-week high vs INVA's 89.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | INVAInnoviva, Inc. | LGNDLigand Pharmaceut… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.07x | 0.82x |
| 52-Week HighHighest price in past year | $25.00 | $212.49 |
| 52-Week LowLowest price in past year | $16.52 | $93.58 |
| % of 52W HighCurrent price vs 52-week peak | +89.0% | +95.1% |
| RSI (14)Momentum oscillator 0–100 | 59.8 | 58.9 |
| Avg Volume (50D)Average daily shares traded | 577K | 172K |
Analyst Outlook
Wall Street rates INVA as "Buy" and LGND as "Buy". Consensus price targets imply 46.1% upside for INVA (target: $33) vs 22.7% for LGND (target: $248).
| Metric | INVAInnoviva, Inc. | LGNDLigand Pharmaceut… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $32.50 | $248.00 |
| # AnalystsCovering analysts | 10 | 16 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.3% | 0.0% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Mar 26 | Change |
|---|---|---|---|
| Innoviva, Inc. (INVA) | 100 | 160.52 | +60.5% |
| Ligand Pharmaceutic… (LGND) | 100 | 187.33 | +87.3% |
Innoviva, Inc. (INVA) returned +101% over 5 years vs Ligand Pharmaceutic… (LGND)'s +43%. A $10,000 investment in INVA 5 years ago would be worth $20,115 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Innoviva, Inc. (INVA) | $134M | $425M | +218.3% |
| Ligand Pharmaceutic… (LGND) | $109M | $167M | +53.4% |
Innoviva, Inc.'s revenue grew from $134M (2016) to $425M (2025) — a 13.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Innoviva, Inc. (INVA) | 44.6% | 63.8% | +43.1% |
| Ligand Pharmaceutic… (LGND) | -1.5% | -2.4% | -60.7% |
Innoviva, Inc.'s net margin went from 45% (2016) to 64% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Innoviva, Inc. (INVA) | 12.1 | 6.1 | -49.6% |
| Ligand Pharmaceutic… (LGND) | 258.4 | 24.3 | -90.6% |
Innoviva, Inc. has traded in a 5x–48x P/E range over 9 years; current trailing P/E is ~7x. Ligand Pharmaceuticals Incorporated has traded in a 3x–258x P/E range over 5 years; current trailing P/E is ~-919x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Innoviva, Inc. (INVA) | 0.53 | 3.3 | +522.6% |
| Ligand Pharmaceutic… (LGND) | -0.08 | -0.22 | -180.3% |
Innoviva, Inc.'s EPS grew from $0.53 (2016) to $3.30 (2025) — a 23% CAGR.
Chart 6Free Cash Flow — 5 Years
Innoviva, Inc. generated $196M FCF in 2025 (-46% vs 2021). Ligand Pharmaceuticals Incorporated generated $77M FCF in 2024 (+11% vs 2021).
INVA vs LGND: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is INVA or LGND a better buy right now?
Innoviva, Inc. (INVA) offers the better valuation at 6.7x trailing P/E (11.3x forward), making it the more compelling value choice. Analysts rate Innoviva, Inc. (INVA) a "Buy" — based on 10 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — INVA or LGND?
On forward P/E, Innoviva, Inc. is actually cheaper at 11.3x.
03Which is the better long-term investment — INVA or LGND?
Over the past 5 years, Innoviva, Inc. (INVA) delivered a total return of +101.2%, compared to +42.6% for Ligand Pharmaceuticals Incorporated (LGND). A $10,000 investment in INVA five years ago would be worth approximately $20K today (assuming dividends reinvested). Over 10 years, the gap is even starker: LGND returned +102.2% versus INVA's +85.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — INVA or LGND?
By beta (market sensitivity over 5 years), Innoviva, Inc. (INVA) is the lower-risk stock at 0.07β versus Ligand Pharmaceuticals Incorporated's 0.82β — meaning LGND is approximately 1060% more volatile than INVA relative to the S&P 500.
05Which has better profit margins — INVA or LGND?
Innoviva, Inc. (INVA) is the more profitable company, earning 63.8% net margin versus -2.4% for Ligand Pharmaceuticals Incorporated — meaning it keeps 63.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: INVA leads at 38.5% versus -13.5% for LGND. At the gross margin level — before operating expenses — LGND leads at 93.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is INVA or LGND more undervalued right now?
On forward earnings alone, Innoviva, Inc. (INVA) trades at 11.3x forward P/E versus 23.8x for Ligand Pharmaceuticals Incorporated — 12.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for INVA: 46.1% to $32.50.
07Which pays a better dividend — INVA or LGND?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is INVA or LGND better for a retirement portfolio?
For long-horizon retirement investors, Innoviva, Inc. (INVA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.07)). Both have compounded well over 10 years (INVA: +85.1%, LGND: +102.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between INVA and LGND?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: INVA is a small-cap deep-value stock; LGND is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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