Roivant Sciences Ltd. (ROIV) vs Vertex Pharmaceuticals Incorporated (VRTX)

Roivant Sciences Ltd. and Vertex Pharmaceuticals Incorporated are both Biotechnology companies. Vertex Pharmaceuticals Incorporated is the larger, with a market value of $129.0B against $24.6B — 5.2× the size. Roivant Sciences Ltd. has negative trailing earnings, so its P/E is not meaningful; Vertex Pharmaceuticals Incorporated trades at 28.8×. Vertex Pharmaceuticals Incorporated grew revenue faster over the last twelve months: 10.2% against −67.6%. Vertex Pharmaceuticals Incorporated has the higher net margin (35.0% vs −3,535.0%) and the higher return on invested capital (24.1% vs −34.5%). Across the 18 metrics below, Vertex Pharmaceuticals Incorporated leads on 16 and Roivant Sciences Ltd. on 2.

Valuation

Metric ROIV VRTX Biotechnology median
P/E n/m 28.82 8.50
P/S 3,208.66 10.07 9.71
P/B 4.91 6.26 2.13
Price to free cash flow n/m 33.38 20.82
EV/EBITDA n/m 23.85 0.64
EV/Sales 2,741.54 9.47 9.21
Earnings yield (1.13%) 3.47% (33.15%)
Free cash flow yield (3.40%) 3.00% (25.50%)

Profitability

Metric ROIV VRTX Biotechnology median
Gross margin 81.21% 86.00% 65.16%
Operating margin (7,914.75%) 37.95% 0.00%
Net margin (3,534.96%) 35.00% 0.00%
Free cash flow margin (10,901.00%) 30.16% 0.00%
Return on equity (5.47%) 23.54% (56.36%)
Return on assets (5.15%) 17.12% (48.04%)
Return on invested capital (34.51%) 24.09% 0.00%

Growth

Metric ROIV VRTX Biotechnology median
Revenue growth (TTM) (67.58%) 10.23% 6.02%
EPS growth (last fiscal year) (125.00%) 836.54% 30.26%
Revenue growth, 5-year CAGR (19.07%) 14.10% 9.41%
Net income growth, 5-year CAGR 0.00% 7.83% 0.00%

Health

Metric ROIV VRTX Biotechnology median
Debt to equity 0.00 0.00 0.00
Current ratio 16.72 3.19 4.72
Net debt to EBITDA 8.39 (1.51) 0.96

Dividend

Metric ROIV VRTX Biotechnology median
Dividend yield — — 0.09%
Payout ratio — — —

Size

Metric ROIV VRTX Biotechnology median
Market cap 24.59b 128.95b 135.18m

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