Revolution Medicines, Inc. (RVMD) vs Vertex Pharmaceuticals Incorporated (VRTX)

Revolution Medicines, Inc. and Vertex Pharmaceuticals Incorporated are both Biotechnology companies. Vertex Pharmaceuticals Incorporated is the larger, with a market value of $132.3B against $42.9B — 3.1× the size. Revolution Medicines, Inc. has negative trailing earnings, so its P/E is not meaningful; Vertex Pharmaceuticals Incorporated trades at 30.4×. Vertex Pharmaceuticals Incorporated grew revenue faster over the last twelve months: 10.2% against −8.81%. Vertex Pharmaceuticals Incorporated has the higher net margin (35.0% vs 0.00%) and the higher return on invested capital (24.1% vs 0.00%). Across the 19 metrics below, Vertex Pharmaceuticals Incorporated leads on 18 and Revolution Medicines, Inc. on 1.

Valuation

Metric RVMD VRTX Biotechnology median
P/E n/m 30.36 7.88
P/S 1,606.35 10.61 11.47
P/B 16.59 6.59 2.52
Price to free cash flow n/m 35.17 21.16
EV/EBITDA n/m 25.17 0.74
EV/Sales 1,498.51 10.00 10.73
Earnings yield (4.30%) 3.29% (28.84%)
Free cash flow yield (2.85%) 2.84% (23.03%)

Profitability

Metric RVMD VRTX Biotechnology median
Gross margin 35.06% 86.00% 65.16%
Operating margin 0.00% 37.95% 0.00%
Net margin 0.00% 35.00% 0.00%
Free cash flow margin 0.00% 30.16% 0.00%
Return on equity (79.09%) 23.54% (57.72%)
Return on assets (52.37%) 17.12% (49.22%)
Return on invested capital 0.00% 24.09% 0.00%

Growth

Metric RVMD VRTX Biotechnology median
Revenue growth (TTM) (8.81%) 10.23% 5.64%
EPS growth (last fiscal year) (66.20%) 836.54% —
Revenue growth, 5-year CAGR (10.50%) 14.10% 8.40%
Net income growth, 5-year CAGR 0.00% 7.83% 0.00%

Health

Metric RVMD VRTX Biotechnology median
Debt to equity 0.40 0.00 0.00
Current ratio 11.38 3.19 4.73
Net debt to EBITDA 1.47 (1.51) 0.96

Dividend

Metric RVMD VRTX Biotechnology median
Dividend yield — — 2.10%
Payout ratio 0.00 0.00 0.00

Size

Metric RVMD VRTX Biotechnology median
Market cap 42.88b 132.32b 162.10m

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