RPRX vs. WST: Royalty Pharma vs. West Pharmaceutical Services Stock Comparison

Company Profile

Royalty Pharma (RPRX) and West Pharmaceutical Services (WST) both fall under the Pharmaceuticals, Biotechnology & Life Sciences industry group, but RPRX is classified in Pharmaceuticals while WST is classified in Life Sciences Tools & Services.

West Pharmaceutical Services (WST) has more than two decades of public-market history since March 17, 1980, whereas Royalty Pharma (RPRX) listed on June 16, 2020 and has a much shorter record to draw on.

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 Royalty Pharma (RPRX) at 12.09% and West Pharmaceutical Services (WST) at 21.23% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

Both Royalty Pharma (RPRX) at 25.70% and West Pharmaceutical Services (WST) at 18.81% keep an unusually large share of revenue as bottom-line profit — each net margin clears its industry’s benchmark range.

Both Royalty Pharma (RPRX) at 81.32% and West Pharmaceutical Services (WST) at 25.37% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

Profitability Metrics

Growth

Both Royalty Pharma (RPRX) at 5.06% and West Pharmaceutical Services (WST) at 6.25% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Both Royalty Pharma (RPRX) at 23.09% and West Pharmaceutical Services (WST) at 1.49% 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

West Pharmaceutical Services (WST) at 2.82 keeps current ratio within its industry’s typical mid-range, while Royalty Pharma (RPRX) at 1.29 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for RPRX.

West Pharmaceutical Services (WST) at 0.11 carries an industry-typical debt-to-equity mix, while Royalty Pharma (RPRX) at 0.88 uses more debt funding than most peers.

Financial Strength Metrics

Dividends

Both Royalty Pharma (RPRX) at 1.37% and West Pharmaceutical Services (WST) at 0.22% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

Both Royalty Pharma (RPRX) at 60.46% and West Pharmaceutical Services (WST) at 9.88% 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

Both Royalty Pharma (RPRX) at 43.99 and West Pharmaceutical Services (WST) at 44.87 sit in the richer earnings-multiple quartile for P/E ratio, so investors are paying more for TTM earnings than they pay for typical peers.

On P/S ratio, both Royalty Pharma (RPRX) at 14.79 and West Pharmaceutical Services (WST) at 8.20 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 West Pharmaceutical Services (WST) at 9.40 carries an above-peer premium to book — WST is pricier on assets.

Valuation Metrics