Royalty Pharma PLC (RPRX) vs Revolution Medicines, Inc. (RVMD)

Royalty Pharma PLC and Revolution Medicines, Inc. are both Biotechnology companies. Revolution Medicines, Inc. is the larger, with a market value of $42.9B against $34.4B — 1.2× the size. Revolution Medicines, Inc. 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 −8.81%. Royalty Pharma PLC has the higher net margin (32.0% vs 0.00%) and the higher return on invested capital (5.28% vs 0.00%). Across the 19 metrics below, Royalty Pharma PLC leads on 15 and Revolution Medicines, Inc. on 4.

Valuation

Metric RPRX RVMD Biotechnology median
P/E 40.14 n/m 7.88
P/S 10.21 1,606.35 11.47
P/B 2.65 16.59 2.52
Price to free cash flow 19.77 n/m 21.16
EV/EBITDA 21.99 n/m 0.74
EV/Sales 13.42 1,498.51 10.73
Earnings yield 2.49% (4.30%) (28.84%)
Free cash flow yield 5.06% (2.85%) (23.03%)

Profitability

Metric RPRX RVMD Biotechnology median
Gross margin 100.00% 35.06% 65.16%
Operating margin 59.61% 0.00% 0.00%
Net margin 32.02% 0.00% 0.00%
Free cash flow margin 51.66% 0.00% 0.00%
Return on equity 8.42% (79.09%) (57.72%)
Return on assets 4.26% (52.37%) (49.22%)
Return on invested capital 5.28% 0.00% 0.00%

Growth

Metric RPRX RVMD Biotechnology median
Revenue growth (TTM) 10.01% (8.81%) 5.64%
EPS growth (last fiscal year) (5.52%) (66.20%) —
Revenue growth, 5-year CAGR 2.30% (10.50%) 8.40%
Net income growth, 5-year CAGR (4.59%) 0.00% 0.00%

Health

Metric RPRX RVMD Biotechnology median
Debt to equity 0.92 0.40 0.00
Current ratio 2.80 11.38 4.73
Net debt to EBITDA 5.22 1.47 0.96

Dividend

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

Size

Metric RPRX RVMD Biotechnology median
Market cap 34.35b 42.88b 162.10m

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