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 $129.0B against $34.3B — 3.8× the size. Vertex Pharmaceuticals Incorporated trades at the lower P/E: 28.8× against 42.3×. Vertex Pharmaceuticals Incorporated grew revenue faster over the last twelve months: 10.2% against 10.0%. Vertex Pharmaceuticals Incorporated has the higher net margin (35.0% vs 32.0%) and the higher return on invested capital (24.1% vs 5.28%). Across the 22 metrics below, Vertex Pharmaceuticals Incorporated leads on 15 and Royalty Pharma PLC on 7.

Valuation

Metric RPRX VRTX Biotechnology median
P/E 42.27 28.82 8.50
P/S 10.76 10.07 9.71
P/B 2.79 6.26 2.13
Price to free cash flow 20.82 33.38 20.82
EV/EBITDA 22.88 23.85 0.64
EV/Sales 13.96 9.47 9.21
Earnings yield 2.37% 3.47% (33.15%)
Free cash flow yield 4.80% 3.00% (25.50%)

Profitability

Metric RPRX VRTX Biotechnology median
Gross margin 100.00% 86.00% 65.16%
Operating margin 59.61% 37.95% 0.00%
Net margin 32.02% 35.00% 0.00%
Free cash flow margin 51.66% 30.16% 0.00%
Return on equity 8.42% 23.54% (56.36%)
Return on assets 4.26% 17.12% (48.04%)
Return on invested capital 5.28% 24.09% 0.00%

Growth

Metric RPRX VRTX Biotechnology median
Revenue growth (TTM) 10.01% 10.23% 6.02%
EPS growth (last fiscal year) (5.52%) 836.54% 30.26%
Revenue growth, 5-year CAGR 2.30% 14.10% 9.41%
Net income growth, 5-year CAGR (4.59%) 7.83% 0.00%

Health

Metric RPRX VRTX Biotechnology median
Debt to equity 0.92 0.00 0.00
Current ratio 2.80 3.19 4.72
Net debt to EBITDA 5.22 (1.51) 0.96

Dividend

Metric RPRX VRTX Biotechnology median
Dividend yield 1.51% — 0.09%
Payout ratio 0.64 — —

Size

Metric RPRX VRTX Biotechnology median
Market cap 34.28b 128.95b 135.18m

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