Seek Returns

MRK vs. RPRX: Merck vs. Royalty Pharma Stock Comparison

How do Merck (MRK) and Royalty Pharma (RPRX) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Merck (MRK) and Royalty Pharma (RPRX) are both classified in the Pharmaceuticals sub-industry within the broader Pharmaceuticals industry, placing them in the closest GICS peer bucket.

Merck (MRK) has more than two decades of public-market history since January 2, 1962, whereas Royalty Pharma (RPRX) listed on June 16, 2020 and has a much shorter record to draw on.

Company profile comparison for Merck (MRK) and Royalty Pharma (RPRX)
Profile ItemMRKRPRX
NameMerck & Co., Inc.Royalty Pharma plc Class A Ordinary Shares
Country/RegionUnited StatesUnited States
GICS SectorHealth CareHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life SciencesPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticalsPharmaceuticals
GICS Sub-IndustryPharmaceuticalsPharmaceuticals
Market Capitalization361.73 billion USD38.70 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 2, 1962June 16, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MRK
RPRX
GSPC
Loading price history…
Merck (MRK) vs. Royalty Pharma (RPRX), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Merck (MRK) and Royalty Pharma (RPRX). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Merck (MRK) and Royalty Pharma (RPRX). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Merck (MRK) and Royalty Pharma (RPRX)
MetricMRKRPRX
Total Return (1Y)76.14%81.08%
Total Return (3Y, Annualized)16.48%39.21%
Total Return (5Y, Annualized)15.77%14.22%

Risk Profile

Drawdown History

MRK
RPRX
GSPC
Loading price history…
Merck (MRK) vs. Royalty Pharma (RPRX), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…
Distribution of monthly total returns for Merck (MRK) and Royalty Pharma (RPRX). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Merck (MRK) and Royalty Pharma (RPRX)
MetricMRKRPRX
Volatility (1Y, Annualized)30.24%22.05%
Beta (5Y)0.110.36
Max Drawdown (5Y)-43.44%-41.98%
Avg. Volume (3M)10.24M3.10M

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
MRK and RPRX are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Merck (MRK) and Royalty Pharma (RPRX)
MetricMRKRPRX
Sharpe Ratio (1Y)2.383.48
Sortino Ratio (1Y)4.335.72

Profitability

ROE (TTM)

Royalty Pharma (RPRX) at 12.09% sits in the top ROE quartile, while Merck (MRK) at 5.06% is closer to the peer norm — stronger capital efficiency for RPRX.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.06%

Max
109.18%
Q3
6.23%
MRK
5.06%
Median
-26.66%
Q1
-64.05%
Min
-167.77%

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

12.09%

Max
109.18%
RPRX
12.09%
Q3
6.23%
Median
-26.66%
Q1
-64.05%
Min
-167.77%
Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their ROE against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Net Margin (TTM)

Royalty Pharma (RPRX) at 25.70% converts revenue to bottom-line profit above its industry’s benchmark range, while Merck (MRK) at 3.64% keeps roughly the typical share for its industry.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

3.64%

Max
18.05%
Q3
4.78%
MRK
3.64%
Median
0.00%
Q1
-4.14%
Min
-17.05%

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

25.70%

RPRX
25.70%
Max
18.05%
Q3
4.78%
Median
0.00%
Q1
-4.14%
Min
-17.05%
Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their net margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Operating Margin (TTM)

Both Merck (MRK) at 35.22% and Royalty Pharma (RPRX) at 81.32% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

35.22%

Max
83.12%
MRK
35.22%
Q3
14.77%
Median
0.00%
Q1
-78.82%
Min
-207.40%

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

81.32%

Max
83.12%
RPRX
81.32%
Q3
14.77%
Median
0.00%
Q1
-78.82%
Min
-207.40%
Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their operating margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Profitability Metrics

Profitability metrics for Merck (MRK) and Royalty Pharma (RPRX)
MetricMRKRPRX
ROE (TTM)5.06%12.09%
ROA (TTM)11.29%5.43%
Net Margin (TTM)3.64%25.70%
Operating Margin (TTM)35.22%81.32%
Gross Margin (TTM)75.20%99.79%

Growth

Revenue Growth

Both Merck (MRK) at 1.31% and Royalty Pharma (RPRX) at 5.06% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Merck (MRK) at 8.01% and Royalty Pharma (RPRX) at 23.09% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Merck (MRK) and Royalty Pharma (RPRX)
MetricMRKRPRX
Revenue Growth (YoY)1.31%5.06%
Revenue Growth (3Y CAGR)3.12%2.06%
EPS Growth (YoY)8.01%23.09%
EPS Growth (3Y CAGR)8.43%161.10%

Financial Strength

Current Ratio (MRQ)

Both Merck (MRK) at 1.35 and Royalty Pharma (RPRX) at 1.29 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.35

Max
25.13
Q3
12.13
Median
5.52
Q1
2.47
MRK
1.35
Min
0.10

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.29

Max
25.13
Q3
12.13
Median
5.52
Q1
2.47
RPRX
1.29
Min
0.10
Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their current ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Debt / Equity (MRQ)

Both Merck (MRK) at 1.20 and Royalty Pharma (RPRX) at 0.88 lean more heavily on debt funding than most peers, landing in the higher-leverage quartile of their industries.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.20

Max
1.42
MRK
1.20
Q3
0.65
Median
0.15
Q1
0.02
Min
0.00

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.88

Max
1.42
RPRX
0.88
Q3
0.65
Median
0.15
Q1
0.02
Min
0.00
Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their debt-to-equity ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Merck (MRK) and Royalty Pharma (RPRX)
MetricMRKRPRX
Current Ratio (MRQ)1.351.29
Debt / Equity (MRQ)1.200.88
Net Debt / EBITDA1.504.76

Dividends

Dividend Yield (TTM)

Both Merck (MRK) at 2.29% and Royalty Pharma (RPRX) at 1.37% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.29%

MRK
2.29%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.37%

RPRX
1.37%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their dividend yield against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Payout Ratio (TTM)

Merck (MRK) reports payout ratio above 100% at 343.43%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Royalty Pharma (RPRX) reports 60.46%, ranking against industry peers normally.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

343.43%

MRK
343.43%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

60.46%

RPRX
60.46%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their payout ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Metrics

Dividend metrics for Merck (MRK) and Royalty Pharma (RPRX)
MetricMRKRPRX
Dividend Yield (TTM)2.29%1.37%
Dividend Payout Ratio (TTM)343.43%60.46%

Valuation

P/E Ratio (TTM)

Both look expensive on trailing earnings: Royalty Pharma (RPRX) at 43.99 sits in the richer P/E ratio quartile, and Merck (MRK) at 148.21 is richer still, above its industry range.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

148.21

MRK
148.21
Max
85.34
Q3
43.46
Median
26.69
Q1
13.30
Min
0.07

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

43.99

Max
85.34
RPRX
43.99
Q3
43.46
Median
26.69
Q1
13.30
Min
0.07
Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their P/E ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Merck (MRK) at 5.37 and Royalty Pharma (RPRX) at 14.79 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.37

Max
58.18
Q3
25.77
Median
7.30
MRK
5.37
Q1
3.01
Min
0.01

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

14.79

Max
58.18
Q3
25.77
RPRX
14.79
Median
7.30
Q1
3.01
Min
0.01
Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their P/S ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/B Ratio (MRQ)

Royalty Pharma (RPRX) at 4.39 is valued about in line with its industry on P/B ratio, while Merck (MRK) at 8.06 carries an above-peer premium to book — MRK is pricier on assets.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

8.06

Max
13.53
MRK
8.06
Q3
6.54
Median
3.25
Q1
1.69
Min
-5.59

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

4.39

Max
13.53
Q3
6.54
RPRX
4.39
Median
3.25
Q1
1.69
Min
-5.59
Loading chart…
Merck (MRK) vs. Royalty Pharma (RPRX): A comparison of their P/B ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Valuation Metrics

Valuation metrics for Merck (MRK) and Royalty Pharma (RPRX)
MetricMRKRPRX
P/E Ratio (TTM)148.2143.99
P/S Ratio (TTM)5.3714.79
P/B Ratio (MRQ)8.064.39
Free Cash Flow Yield (TTM)3.88%-1.16%