AKRO vs. RPRX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AKRO and RPRX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
RPRX’s market capitalization of 20.45 billion USD is significantly greater than AKRO’s 4.13 billion USD, highlighting its more substantial market valuation.
RPRX’s positive beta (0.47) suggests market-aligned movements, while AKRO with a negative beta (-0.16) tends to move counter to overall market trends, potentially acting as a defensive asset.
| Symbol | AKRO | RPRX |
|---|---|---|
| Company Name | Akero Therapeutics, Inc. | Royalty Pharma plc |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Biotechnology | Biotechnology |
| CEO | Andrew Cheng | Pablo Gerardo Legorreta |
| Price | 51.77 USD | 36.37 USD |
| Market Cap | 4.13 billion USD | 20.45 billion USD |
| Beta | -0.16 | 0.47 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | June 20, 2019 | June 16, 2020 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AKRO and RPRX by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AKRO
-31.98%
Biotechnology Industry
- Max
- 72.39%
- Q3
- -6.30%
- Median
- -32.82%
- Q1
- -68.26%
- Min
- -147.61%
AKRO has a negative Return on Equity of -31.98%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
RPRX
16.19%
Biotechnology Industry
- Max
- 72.39%
- Q3
- -6.30%
- Median
- -32.82%
- Q1
- -68.26%
- Min
- -147.61%
In the upper quartile for the Biotechnology industry, RPRX’s Return on Equity of 16.19% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AKRO
-27.35%
Biotechnology Industry
- Max
- 48.74%
- Q3
- -10.68%
- Median
- -31.65%
- Q1
- -52.92%
- Min
- -113.69%
AKRO has a negative Return on Invested Capital of -27.35%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
RPRX
9.56%
Biotechnology Industry
- Max
- 48.74%
- Q3
- -10.68%
- Median
- -31.65%
- Q1
- -52.92%
- Min
- -113.69%
In the upper quartile for the Biotechnology industry, RPRX’s Return on Invested Capital of 9.56% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AKRO
--
Biotechnology Industry
- Max
- 87.75%
- Q3
- -5.05%
- Median
- -103.44%
- Q1
- -1,032.77%
- Min
- -2,366.07%
Net Profit Margin data for AKRO is currently unavailable.
RPRX
48.24%
Biotechnology Industry
- Max
- 87.75%
- Q3
- -5.05%
- Median
- -103.44%
- Q1
- -1,032.77%
- Min
- -2,366.07%
A Net Profit Margin of 48.24% places RPRX in the upper quartile for the Biotechnology industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AKRO
--
Biotechnology Industry
- Max
- 87.75%
- Q3
- -3.28%
- Median
- -115.26%
- Q1
- -1,188.86%
- Min
- -2,943.30%
Operating Profit Margin data for AKRO is currently unavailable.
RPRX
83.95%
Biotechnology Industry
- Max
- 87.75%
- Q3
- -3.28%
- Median
- -115.26%
- Q1
- -1,188.86%
- Min
- -2,943.30%
An Operating Profit Margin of 83.95% places RPRX in the upper quartile for the Biotechnology industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AKRO | RPRX |
|---|---|---|
| Return on Equity (TTM) | -31.98% | 16.19% |
| Return on Assets (TTM) | -23.31% | 6.20% |
| Return on Invested Capital (TTM) | -27.35% | 9.56% |
| Net Profit Margin (TTM) | -- | 48.24% |
| Operating Profit Margin (TTM) | -- | 83.95% |
| Gross Profit Margin (TTM) | -- | 99.66% |
Financial Strength
Current Ratio
AKRO
16.80
Biotechnology Industry
- Max
- 28.73
- Q3
- 13.97
- Median
- 6.31
- Q1
- 3.60
- Min
- 0.02
AKRO’s Current Ratio of 16.80 is in the upper quartile for the Biotechnology industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
RPRX
1.56
Biotechnology Industry
- Max
- 28.73
- Q3
- 13.97
- Median
- 6.31
- Q1
- 3.60
- Min
- 0.02
RPRX’s Current Ratio of 1.56 falls into the lower quartile for the Biotechnology industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AKRO
0.01
Biotechnology Industry
- Max
- 0.46
- Q3
- 0.22
- Median
- 0.06
- Q1
- 0.02
- Min
- 0.00
Falling into the lower quartile for the Biotechnology industry, AKRO’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
RPRX
1.14
Biotechnology Industry
- Max
- 0.46
- Q3
- 0.22
- Median
- 0.06
- Q1
- 0.02
- Min
- 0.00
With a Debt-to-Equity Ratio of 1.14, RPRX operates with exceptionally high leverage compared to the Biotechnology industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
AKRO
-121.42
Biotechnology Industry
- Max
- 108.32
- Q3
- -0.55
- Median
- -8.49
- Q1
- -74.83
- Min
- -168.36
AKRO has a negative Interest Coverage Ratio of -121.42. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
RPRX
7.70
Biotechnology Industry
- Max
- 108.32
- Q3
- -0.55
- Median
- -8.49
- Q1
- -74.83
- Min
- -168.36
RPRX’s Interest Coverage Ratio of 7.70 is in the upper quartile for the Biotechnology industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AKRO | RPRX |
|---|---|---|
| Current Ratio (TTM) | 16.80 | 1.56 |
| Quick Ratio (TTM) | 16.80 | 1.56 |
| Debt-to-Equity Ratio (TTM) | 0.01 | 1.14 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.43 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.65 | 2.80 |
| Interest Coverage Ratio (TTM) | -121.42 | 7.70 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AKRO and RPRX. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AKRO
0.00%
Biotechnology Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AKRO currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
RPRX
2.36%
Biotechnology Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
RPRX’s Dividend Yield of 2.36% is exceptionally high, placing it well above the typical range for the Biotechnology industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio
AKRO
0.00%
Biotechnology Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AKRO has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
RPRX
34.61%
Biotechnology Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 34.61%, RPRX’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Biotechnology industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | AKRO | RPRX |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.36% |
| Dividend Payout Ratio (TTM) | 0.00% | 34.61% |
Valuation
Price-to-Earnings Ratio
AKRO
-15.11
Biotechnology Industry
- Max
- 78.44
- Q3
- 48.98
- Median
- 20.50
- Q1
- 12.64
- Min
- 2.14
AKRO has a negative P/E Ratio of -15.11. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
RPRX
14.43
Biotechnology Industry
- Max
- 78.44
- Q3
- 48.98
- Median
- 20.50
- Q1
- 12.64
- Min
- 2.14
RPRX’s P/E Ratio of 14.43 is within the middle range for the Biotechnology industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AKRO
0.68
Biotechnology Industry
- Max
- 2.29
- Q3
- 1.10
- Median
- 0.49
- Q1
- 0.16
- Min
- 0.02
AKRO’s Forward PEG Ratio of 0.68 is within the middle range of its peers in the Biotechnology industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
RPRX
0.81
Biotechnology Industry
- Max
- 2.29
- Q3
- 1.10
- Median
- 0.49
- Q1
- 0.16
- Min
- 0.02
RPRX’s Forward PEG Ratio of 0.81 is within the middle range of its peers in the Biotechnology industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
AKRO
--
Biotechnology Industry
- Max
- 110.90
- Q3
- 59.76
- Median
- 11.33
- Q1
- 4.45
- Min
- 0.17
P/S Ratio data for AKRO is currently unavailable.
RPRX
9.03
Biotechnology Industry
- Max
- 110.90
- Q3
- 59.76
- Median
- 11.33
- Q1
- 4.45
- Min
- 0.17
RPRX’s P/S Ratio of 9.03 aligns with the market consensus for the Biotechnology industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AKRO
3.76
Biotechnology Industry
- Max
- 15.78
- Q3
- 7.44
- Median
- 3.31
- Q1
- 1.58
- Min
- 0.31
The P/B Ratio is often not a primary valuation metric for the Biotechnology industry.
RPRX
2.36
Biotechnology Industry
- Max
- 15.78
- Q3
- 7.44
- Median
- 3.31
- Q1
- 1.58
- Min
- 0.31
The P/B Ratio is often not a primary valuation metric for the Biotechnology industry.
Valuation at a Glance
| Symbol | AKRO | RPRX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -15.11 | 14.43 |
| Forward PEG Ratio (TTM) | 0.68 | 0.81 |
| Price-to-Sales Ratio (P/S, TTM) | -- | 9.03 |
| Price-to-Book Ratio (P/B, TTM) | 3.76 | 2.36 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -15.71 | 7.57 |
| EV-to-EBITDA (TTM) | -14.31 | 11.58 |
| EV-to-Sales (TTM) | -- | 11.92 |