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Royalty Pharma PLC (RPRX) vs Vertex Pharmaceuticals Incorporated (VRTX)

Royalty Pharma PLC and Vertex Pharmaceuticals Incorporated are both Biotechnology companies. Vertex Pharmaceuticals Incorporated is the larger, with a market value of $137.5B against $39.0B — 3.5× the size. Vertex Pharmaceuticals Incorporated trades at the lower P/E: 34.6× against 44.8×. Royalty Pharma PLC grew revenue faster over the last twelve months: 11.4% against 10.5%. Vertex Pharmaceuticals Incorporated has the higher net margin (30.7% vs 0.00%) and the higher return on invested capital (14.9% vs 5.24%). Across the 22 metrics below, Vertex Pharmaceuticals Incorporated leads on 14 and Royalty Pharma PLC on 8.

Valuation

Metric RPRX VRTX Biotechnology median
P/E 44.80 34.57 10.26
P/S 11.53 10.60 9.18
P/B 3.08 6.57 2.05
Price to free cash flow 23.33 42.87 24.81
EV/EBITDA 24.70 29.68 0.65
EV/Sales 14.60 10.41 8.98
Earnings yield 2.23% 2.89% (34.89%)
Free cash flow yield 4.29% 2.33% (24.52%)

Profitability

Metric RPRX VRTX Biotechnology median
Gross margin 100.00% 85.53% 65.16%
Operating margin 57.14% 33.23% 0.00%
Net margin 0.00% 30.70% 0.00%
Free cash flow margin 113.11% 24.73% 0.00%
Return on equity 0.00% 20.80% (50.12%)
Return on assets 0.00% 13.81% (45.60%)
Return on invested capital 5.24% 14.86% 0.00%

Growth

Metric RPRX VRTX Biotechnology median
Revenue growth (TTM) 11.36% 10.48% 6.26%
EPS growth (last fiscal year) (6.81%) 836.54% 29.88%
Revenue growth, 5-year CAGR 2.30% 14.10% 9.75%
Net income growth, 5-year CAGR (4.59%) 7.83% 0.00%

Health

Metric RPRX VRTX Biotechnology median
Debt to equity 0.88 0.17 0.00
Current ratio 1.29 2.34 4.89
Net debt to EBITDA 5.22 (1.51) 1.01

Dividend

Metric RPRX VRTX Biotechnology median
Dividend yield 1.37% — 0.41%
Payout ratio 0.66 — —

Size

Metric RPRX VRTX Biotechnology median
Market cap 38.95b 137.54b 172.11m

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