Seek Returns logo

RPRX vs. VRTX: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at RPRX and VRTX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolRPRXVRTX
Company NameRoyalty Pharma plcVertex Pharmaceuticals Incorporated
CountryUnited StatesUnited States
GICS SectorHealth CareHealth Care
GICS IndustryPharmaceuticalsBiotechnology
Market Capitalization21.51 billion USD101.11 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJune 16, 2020July 24, 1991
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of RPRX and VRTX 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.

RPRX vs. VRTX: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolRPRXVRTX
5-Day Price Return1.04%1.04%
13-Week Price Return7.68%-10.51%
26-Week Price Return13.62%-14.75%
52-Week Price Return34.16%-19.20%
Month-to-Date Return0.22%-13.68%
Year-to-Date Return44.57%-2.07%
10-Day Avg. Volume3.37M2.23M
3-Month Avg. Volume4.10M1.72M
3-Month Volatility21.06%47.18%
Beta0.590.44

Profitability

Return on Equity (TTM)

RPRX

15.20%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.90%
Q1
5.63%
Min
-9.96%

RPRX’s Return on Equity of 15.20% is on par with the norm for the Pharmaceuticals industry, indicating its profitability relative to shareholder equity is typical for the sector.

VRTX

22.14%

Biotechnology Industry

Max
77.14%
Q3
10.76%
Median
-20.08%
Q1
-42.71%
Min
-119.20%

In the upper quartile for the Biotechnology industry, VRTX’s Return on Equity of 22.14% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

RPRX vs. VRTX: A comparison of their Return on Equity (TTM) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Net Profit Margin (TTM)

RPRX

44.28%

Pharmaceuticals Industry

Max
34.51%
Q3
17.73%
Median
12.12%
Q1
5.99%
Min
-7.73%

RPRX’s Net Profit Margin of 44.28% is exceptionally high, placing it well beyond the typical range for the Pharmaceuticals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

VRTX

31.86%

Biotechnology Industry

Max
59.44%
Q3
16.21%
Median
-11.49%
Q1
-167.42%
Min
-409.07%

A Net Profit Margin of 31.86% places VRTX in the upper quartile for the Biotechnology industry, signifying strong profitability and more effective cost management than most of its peers.

RPRX vs. VRTX: A comparison of their Net Profit Margin (TTM) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Operating Profit Margin (TTM)

RPRX

79.84%

Pharmaceuticals Industry

Max
41.53%
Q3
23.00%
Median
16.24%
Q1
9.24%
Min
-6.94%

RPRX’s Operating Profit Margin of 79.84% 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.

VRTX

34.36%

Biotechnology Industry

Max
60.62%
Q3
20.76%
Median
-12.41%
Q1
-181.14%
Min
-482.02%

An Operating Profit Margin of 34.36% places VRTX 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.

RPRX vs. VRTX: A comparison of their Operating Profit Margin (TTM) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Profitability at a Glance

SymbolRPRXVRTX
Return on Equity (TTM)15.20%22.14%
Return on Assets (TTM)5.66%15.87%
Net Profit Margin (TTM)44.28%31.86%
Operating Profit Margin (TTM)79.84%34.36%
Gross Profit Margin (TTM)--86.11%

Financial Strength

Current Ratio (MRQ)

RPRX

1.26

Pharmaceuticals Industry

Max
4.49
Q3
2.77
Median
1.74
Q1
1.26
Min
0.11

RPRX’s Current Ratio of 1.26 falls into the lower quartile for the Pharmaceuticals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

VRTX

2.52

Biotechnology Industry

Max
19.31
Q3
9.38
Median
4.54
Q1
2.45
Min
0.76

VRTX’s Current Ratio of 2.52 aligns with the median group of the Biotechnology industry, indicating that its short-term liquidity is in line with its sector peers.

RPRX vs. VRTX: A comparison of their Current Ratio (MRQ) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Debt-to-Equity Ratio (MRQ)

RPRX

1.26

Pharmaceuticals Industry

Max
2.44
Q3
1.07
Median
0.42
Q1
0.11
Min
0.00

RPRX’s leverage is in the upper quartile of the Pharmaceuticals industry, with a Debt-to-Equity Ratio of 1.26. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

VRTX

0.01

Biotechnology Industry

Max
1.35
Q3
0.64
Median
0.09
Q1
0.00
Min
0.00

VRTX’s Debt-to-Equity Ratio of 0.01 is typical for the Biotechnology industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

RPRX vs. VRTX: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Interest Coverage Ratio (TTM)

RPRX

4.70

Pharmaceuticals Industry

Max
103.95
Q3
44.18
Median
9.83
Q1
2.82
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.

VRTX

72.37

Biotechnology Industry

Max
72.37
Q3
1.91
Median
-7.81
Q1
-63.90
Min
-153.80

VRTX’s Interest Coverage Ratio of 72.37 is in the upper quartile for the Biotechnology industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

RPRX vs. VRTX: A comparison of their Interest Coverage Ratio (TTM) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Financial Strength at a Glance

SymbolRPRXVRTX
Current Ratio (MRQ)1.262.52
Quick Ratio (MRQ)1.262.00
Debt-to-Equity Ratio (MRQ)1.260.01
Interest Coverage Ratio (TTM)4.7072.37

Growth

Revenue Growth

RPRX vs. VRTX: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

RPRX vs. VRTX: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

RPRX

1.76%

Pharmaceuticals Industry

Max
6.98%
Q3
3.32%
Median
2.13%
Q1
0.14%
Min
0.00%

RPRX’s Dividend Yield of 1.76% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.

VRTX

0.00%

Biotechnology Industry

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

VRTX 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 vs. VRTX: A comparison of their Dividend Yield (TTM) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Dividend Payout Ratio (TTM)

RPRX

36.87%

Pharmaceuticals Industry

Max
165.20%
Q3
90.59%
Median
49.13%
Q1
28.91%
Min
0.00%

RPRX’s Dividend Payout Ratio of 36.87% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

VRTX

0.00%

Biotechnology Industry

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

VRTX 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 vs. VRTX: A comparison of their Dividend Payout Ratio (TTM) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Dividend at a Glance

SymbolRPRXVRTX
Dividend Yield (TTM)1.76%0.00%
Dividend Payout Ratio (TTM)36.87%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

RPRX

21.00

Pharmaceuticals Industry

Max
42.51
Q3
26.88
Median
19.11
Q1
15.12
Min
0.00

RPRX’s P/E Ratio of 21.00 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.

VRTX

28.00

Biotechnology Industry

Max
60.14
Q3
38.17
Median
29.01
Q1
15.12
Min
0.00

VRTX’s P/E Ratio of 28.00 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.

RPRX vs. VRTX: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Price-to-Sales Ratio (TTM)

RPRX

9.30

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

With a P/S Ratio of 9.30, 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.

VRTX

8.92

Biotechnology Industry

Max
76.98
Q3
36.53
Median
9.49
Q1
4.49
Min
0.00

VRTX’s P/S Ratio of 8.92 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.

RPRX vs. VRTX: A comparison of their Price-to-Sales Ratio (TTM) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Price-to-Book Ratio (MRQ)

RPRX

3.19

Pharmaceuticals Industry

Max
9.78
Q3
4.96
Median
2.23
Q1
1.46
Min
0.60

RPRX’s P/B Ratio of 3.19 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.

VRTX

6.66

Biotechnology Industry

Max
20.53
Q3
9.76
Median
4.77
Q1
2.49
Min
0.59

VRTX’s P/B Ratio of 6.66 is within the conventional range for the Biotechnology 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 vs. VRTX: A comparison of their Price-to-Book Ratio (MRQ) against their respective Pharmaceuticals and Biotechnology industry benchmarks.

Valuation at a Glance

SymbolRPRXVRTX
Price-to-Earnings Ratio (TTM)21.0028.00
Price-to-Sales Ratio (TTM)9.308.92
Price-to-Book Ratio (MRQ)3.196.66
Price-to-Free Cash Flow Ratio (TTM)17.8029.10