NVS vs. RPRX: Novartis vs. Royalty Pharma Stock Comparison

Company Profile

Novartis (NVS) 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.

Novartis (NVS) has more than two decades of public-market history since November 7, 1996, whereas Royalty Pharma (RPRX) listed on June 16, 2020 and has a much shorter record to draw on.

Royalty Pharma (RPRX) trades as ordinary local shares, while Novartis (NVS) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Novartis (NVS) at 24.33% and Royalty Pharma (RPRX) at 12.09% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

Royalty Pharma (RPRX) at 25.70% keeps the most of each sales dollar — above its industry’s net margin range — and Novartis (NVS) at 17.49% also retains a top-quartile share.

Both Novartis (NVS) at 34.27% 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.

Profitability Metrics

Growth

Both Novartis (NVS) at 9.57% 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.

Both Novartis (NVS) at 21.81% 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.

Growth Metrics

Financial Strength

Both Novartis (NVS) at 0.88 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.

Both Novartis (NVS) at 1.29 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.

Financial Strength Metrics

Dividends

Both Novartis (NVS) at 2.88% 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.

Both Novartis (NVS) at 90.46% and Royalty Pharma (RPRX) at 60.46% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

Dividend Metrics

Valuation

Novartis (NVS) at 31.02 is near its industry’s usual P/E ratio, while Royalty Pharma (RPRX) at 43.99 sits in the richer quartile — RPRX needs stronger growth or earnings quality to justify the premium.

On P/S ratio, both Novartis (NVS) at 5.35 and Royalty Pharma (RPRX) at 14.79 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

Royalty Pharma (RPRX) at 4.39 is valued about in line with its industry on P/B ratio, while Novartis (NVS) at 8.25 carries an above-peer premium to book — NVS is pricier on assets.

Valuation Metrics