Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company PDL BioPharma (Nasdaq: PDLI) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at PDL's business and see what CAPS investors are saying about the stock right now.

PDL facts

Headquarters (founded)

Incline Village, Nev. (1986)

Market Cap

$863.2 million



Trailing-12-Month Revenue

$327.1 million


CEO John McLaughlin (since 2008)

CFO Christine Larson (since 2008)

Return on Capital (average, past 3 years)



$227.2 million / $453 million


Amgen (Nasdaq: AMGN)

Seattle Genetics (Nasdaq: SGEN)

XOMA (Nasdaq: XOMA)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 842 members who have rated PDL believe the stock will outperform the S&P 500 going forward. These bulls include feynmanshomeboy and Idigmoney.

Just two months ago, fynmanshomeboy summed up the "wind-down" scenario for our community: "Payouts taper off from 2014-2015. Even without sales growth, royalties pay out $8 over that time period. That's the worst, probable case if litigation doesn't go against them."

While PDL receives all of its revenues from licenses that are, indeed, set to expire in a few years, our community continues to see tons of potential in the business. Thanks to its ultra capital-light business model -- in which it collects royalties from the likes of Elan (NYSE: ELN), Biogen Idec (Nasdaq: BIIB), and Eli Lilly (NYSE: LLY) -- PDL's three-year average return on capital (43.9%) easily tops that of listed rivals Amgen (10.9%), Seattle Genetics (-36.8%), and XOMA (-50.5%). With management actively seeking new license agreements, PDL's upside seems attractive.

CAPS member Idigmoney expands on the bull case:

This is a numbers decision: high consistent ROE/ROI, very low PEG ratio, almost $200 million in free cash flow, manageable debt ratio at about 4 years of current earnings, three or more years of positive operating cash flow. I like the light, patent-oriented business model.

What do you think about PDL, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Elan is a Motley Fool Rule Breakers selection. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.