Roivant Sciences Ltd. (ROIV) vs Royalty Pharma PLC (RPRX)

Roivant Sciences Ltd. and Royalty Pharma PLC are both Biotechnology companies. Royalty Pharma PLC is the larger, with a market value of $34.4B against $25.6B — 1.3× the size. Roivant Sciences Ltd. has negative trailing earnings, so its P/E is not meaningful; Royalty Pharma PLC trades at 40.1×. Royalty Pharma PLC grew revenue faster over the last twelve months: 10.0% against −67.6%. Royalty Pharma PLC has the higher net margin (32.0% vs −3,535.0%) and the higher return on invested capital (5.28% vs −34.5%). Across the 19 metrics below, Royalty Pharma PLC leads on 16 and Roivant Sciences Ltd. on 3.

Valuation

Metric ROIV RPRX Biotechnology median
P/E n/m 40.14 7.88
P/S 3,425.89 10.21 11.47
P/B 5.24 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 2,958.77 13.42 10.73
Earnings yield (1.06%) 2.49% (28.84%)
Free cash flow yield (3.18%) 5.06% (23.03%)

Profitability

Metric ROIV RPRX Biotechnology median
Gross margin 81.21% 100.00% 65.16%
Operating margin (7,914.75%) 59.61% 0.00%
Net margin (3,534.96%) 32.02% 0.00%
Free cash flow margin (10,901.00%) 51.66% 0.00%
Return on equity (5.47%) 8.42% (57.72%)
Return on assets (5.15%) 4.26% (49.22%)
Return on invested capital (34.51%) 5.28% 0.00%

Growth

Metric ROIV RPRX Biotechnology median
Revenue growth (TTM) (67.58%) 10.01% 5.64%
EPS growth (last fiscal year) (125.00%) (5.52%) —
Revenue growth, 5-year CAGR (19.07%) 2.30% 8.40%
Net income growth, 5-year CAGR 0.00% (4.59%) 0.00%

Health

Metric ROIV RPRX Biotechnology median
Debt to equity 0.00 0.92 0.00
Current ratio 16.72 2.80 4.73
Net debt to EBITDA 8.39 5.22 0.96

Dividend

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

Size

Metric ROIV RPRX Biotechnology median
Market cap 25.64b 34.35b 162.10m

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