Insmed, Inc. (INSM) vs Royalty Pharma PLC (RPRX)

Insmed, Inc. and Royalty Pharma PLC are both Biotechnology companies. Royalty Pharma PLC is the larger, with a market value of $34.4B against $26.8B — 1.3× the size. Insmed, Inc. has negative trailing earnings, so its P/E is not meaningful; Royalty Pharma PLC trades at 40.1×. Insmed, Inc. grew revenue faster over the last twelve months: 185.8% against 10.0%. Royalty Pharma PLC has the higher net margin (32.0% vs −76.9%) and the higher return on invested capital (5.28% vs −329.2%). Across the 19 metrics below, Royalty Pharma PLC leads on 13 and Insmed, Inc. on 6.

Valuation

Metric INSM RPRX Biotechnology median
P/E n/m 40.14 7.88
P/S 22.51 10.21 11.47
P/B 33.81 2.65 2.52
Price to free cash flow n/m 19.77 21.16
EV/EBITDA n/m 21.99 0.74
EV/Sales 22.18 13.42 10.73
Earnings yield (3.49%) 2.49% (28.84%)
Free cash flow yield (3.15%) 5.06% (23.03%)

Profitability

Metric INSM RPRX Biotechnology median
Gross margin 83.46% 100.00% 65.16%
Operating margin (73.89%) 59.61% 0.00%
Net margin (76.94%) 32.02% 0.00%
Free cash flow margin (71.00%) 51.66% 0.00%
Return on equity (87.22%) 8.42% (57.72%)
Return on assets (38.20%) 4.26% (49.22%)
Return on invested capital (329.22%) 5.28% 0.00%

Growth

Metric INSM RPRX Biotechnology median
Revenue growth (TTM) 185.76% 10.01% 5.64%
EPS growth (last fiscal year) (15.26%) (5.52%) —
Revenue growth, 5-year CAGR 29.83% 2.30% 8.40%
Net income growth, 5-year CAGR 0.00% (4.59%) 0.00%

Health

Metric INSM RPRX Biotechnology median
Debt to equity 0.74 0.92 0.00
Current ratio 3.72 2.80 4.73
Net debt to EBITDA 0.71 5.22 0.96

Dividend

Metric INSM RPRX Biotechnology median
Dividend yield — 3.09% 2.10%
Payout ratio 0.00 1.42 0.00

Size

Metric INSM RPRX Biotechnology median
Market cap 26.84b 34.35b 162.10m

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