MCK vs. RPRX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MCK and RPRX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MCK | RPRX |
|---|---|---|
| Company Name | McKesson Corporation | Royalty Pharma plc |
| Country | United States | United States |
| GICS Sector | Health Care | Health Care |
| GICS Industry | Health Care Providers & Services | Pharmaceuticals |
| Market Capitalization | 105.63 billion USD | 23.01 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | November 10, 1994 | June 16, 2020 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MCK 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.
Historical Performance at a Glance
| Symbol | MCK | RPRX |
|---|---|---|
| 5-Day Price Return | -2.01% | 1.61% |
| 13-Week Price Return | 25.12% | 7.73% |
| 26-Week Price Return | 22.44% | 19.32% |
| 52-Week Price Return | 34.82% | 51.49% |
| Month-to-Date Return | 3.79% | 4.32% |
| Year-to-Date Return | 47.76% | 53.51% |
| 10-Day Avg. Volume | 0.81M | 5.43M |
| 3-Month Avg. Volume | 0.74M | 3.75M |
| 3-Month Volatility | 24.51% | 26.39% |
| Beta | 0.41 | 0.42 |
Profitability
Return on Equity (TTM)
MCK
39.43%
Health Care Providers & Services Industry
- Max
- 24.67%
- Q3
- 15.54%
- Median
- 8.37%
- Q1
- 5.49%
- Min
- -2.09%
MCK’s Return on Equity of 39.43% is exceptionally high, placing it well beyond the typical range for the Health Care Providers & Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
RPRX
11.59%
Pharmaceuticals Industry
- Max
- 38.95%
- Q3
- 20.34%
- Median
- 11.59%
- Q1
- 3.32%
- Min
- -10.91%
RPRX’s Return on Equity of 11.59% is on par with the norm for the Pharmaceuticals industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
MCK
1.04%
Health Care Providers & Services Industry
- Max
- 9.33%
- Q3
- 4.80%
- Median
- 2.90%
- Q1
- 0.93%
- Min
- -3.28%
MCK’s Net Profit Margin of 1.04% is aligned with the median group of its peers in the Health Care Providers & Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
RPRX
32.55%
Pharmaceuticals Industry
- Max
- 39.07%
- Q3
- 19.28%
- Median
- 13.48%
- Q1
- 5.73%
- Min
- -8.86%
A Net Profit Margin of 32.55% places RPRX in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
MCK
1.36%
Health Care Providers & Services Industry
- Max
- 18.35%
- Q3
- 8.71%
- Median
- 5.10%
- Q1
- 2.10%
- Min
- -3.07%
MCK’s Operating Profit Margin of 1.36% is in the lower quartile for the Health Care Providers & Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
RPRX
65.22%
Pharmaceuticals Industry
- Max
- 45.58%
- Q3
- 24.35%
- Median
- 18.05%
- Q1
- 7.58%
- Min
- -11.88%
RPRX’s Operating Profit Margin of 65.22% is exceptionally high, placing it well above the typical range for the Pharmaceuticals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | MCK | RPRX |
|---|---|---|
| Return on Equity (TTM) | 39.43% | 11.59% |
| Return on Assets (TTM) | 5.18% | 4.16% |
| Net Profit Margin (TTM) | 1.04% | 32.55% |
| Operating Profit Margin (TTM) | 1.36% | 65.22% |
| Gross Profit Margin (TTM) | 3.47% | -- |
Financial Strength
Current Ratio (MRQ)
MCK
0.88
Health Care Providers & Services Industry
- Max
- 2.00
- Q3
- 1.56
- Median
- 1.28
- Q1
- 0.92
- Min
- 0.01
MCK’s Current Ratio of 0.88 falls into the lower quartile for the Health Care Providers & Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
RPRX
3.48
Pharmaceuticals Industry
- Max
- 5.45
- Q3
- 2.99
- Median
- 1.98
- Q1
- 1.29
- Min
- 0.78
RPRX’s Current Ratio of 3.48 is in the upper quartile for the Pharmaceuticals industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
MCK
1.29
Health Care Providers & Services Industry
- Max
- 2.41
- Q3
- 1.39
- Median
- 0.74
- Q1
- 0.46
- Min
- 0.00
MCK’s Debt-to-Equity Ratio of 1.29 is typical for the Health Care Providers & Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
RPRX
1.39
Pharmaceuticals Industry
- Max
- 1.79
- Q3
- 0.78
- Median
- 0.31
- Q1
- 0.08
- Min
- 0.00
RPRX’s leverage is in the upper quartile of the Pharmaceuticals industry, with a Debt-to-Equity Ratio of 1.39. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
MCK
17.45
Health Care Providers & Services Industry
- Max
- 14.47
- Q3
- 7.46
- Median
- 4.52
- Q1
- 2.04
- Min
- -4.44
With an Interest Coverage Ratio of 17.45, MCK demonstrates a superior capacity to service its debt, placing it well above the typical range for the Health Care Providers & Services industry. This stems from either robust earnings or a conservative debt load.
RPRX
4.70
Pharmaceuticals Industry
- Max
- 103.95
- Q3
- 43.60
- Median
- 10.15
- Q1
- 2.37
- Min
- -42.71
RPRX’s Interest Coverage Ratio of 4.70 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | MCK | RPRX |
|---|---|---|
| Current Ratio (MRQ) | 0.88 | 3.48 |
| Quick Ratio (MRQ) | 0.48 | 3.48 |
| Debt-to-Equity Ratio (MRQ) | 1.29 | 1.39 |
| Interest Coverage Ratio (TTM) | 17.45 | 4.70 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MCK
0.34%
Health Care Providers & Services Industry
- Max
- 5.51%
- Q3
- 2.66%
- Median
- 1.06%
- Q1
- 0.00%
- Min
- 0.00%
MCK’s Dividend Yield of 0.34% is consistent with its peers in the Health Care Providers & Services industry, providing a dividend return that is standard for its sector.
RPRX
1.67%
Pharmaceuticals Industry
- Max
- 6.72%
- Q3
- 3.48%
- Median
- 1.90%
- Q1
- 0.00%
- Min
- 0.00%
RPRX’s Dividend Yield of 1.67% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
MCK
8.98%
Health Care Providers & Services Industry
- Max
- 187.56%
- Q3
- 81.14%
- Median
- 33.42%
- Q1
- 0.00%
- Min
- 0.00%
MCK’s Dividend Payout Ratio of 8.98% is within the typical range for the Health Care Providers & Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
RPRX
49.36%
Pharmaceuticals Industry
- Max
- 199.58%
- Q3
- 85.87%
- Median
- 49.36%
- Q1
- 1.12%
- Min
- 0.00%
RPRX’s Dividend Payout Ratio of 49.36% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | MCK | RPRX |
|---|---|---|
| Dividend Yield (TTM) | 0.34% | 1.67% |
| Dividend Payout Ratio (TTM) | 8.98% | 49.36% |
Valuation
Price-to-Earnings Ratio (TTM)
MCK
26.08
Health Care Providers & Services Industry
- Max
- 48.86
- Q3
- 32.22
- Median
- 21.78
- Q1
- 13.97
- Min
- 8.01
MCK’s P/E Ratio of 26.08 is within the middle range for the Health Care Providers & Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
RPRX
29.52
Pharmaceuticals Industry
- Max
- 52.64
- Q3
- 29.89
- Median
- 20.77
- Q1
- 13.37
- Min
- 5.71
RPRX’s P/E Ratio of 29.52 is within the middle range for the Pharmaceuticals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
MCK
0.27
Health Care Providers & Services Industry
- Max
- 3.66
- Q3
- 1.64
- Median
- 0.72
- Q1
- 0.27
- Min
- 0.10
MCK’s P/S Ratio of 0.27 aligns with the market consensus for the Health Care Providers & Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
RPRX
9.61
Pharmaceuticals Industry
- Max
- 8.74
- Q3
- 4.66
- Median
- 2.37
- Q1
- 1.67
- Min
- 0.11
With a P/S Ratio of 9.61, RPRX trades at a valuation that eclipses even the highest in the Pharmaceuticals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
MCK
4.06
Health Care Providers & Services Industry
- Max
- 7.33
- Q3
- 4.33
- Median
- 2.48
- Q1
- 1.31
- Min
- 0.65
MCK’s P/B Ratio of 4.06 is within the conventional range for the Health Care Providers & Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
RPRX
3.21
Pharmaceuticals Industry
- Max
- 9.86
- Q3
- 5.28
- Median
- 2.48
- Q1
- 1.57
- Min
- 0.59
RPRX’s P/B Ratio of 3.21 is within the conventional range for the Pharmaceuticals industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | MCK | RPRX |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 26.08 | 29.52 |
| Price-to-Sales Ratio (TTM) | 0.27 | 9.61 |
| Price-to-Book Ratio (MRQ) | 4.06 | 3.21 |
| Price-to-Free Cash Flow Ratio (TTM) | 10.85 | 18.76 |