WallStSmart

Madrigal Pharmaceuticals Inc (MDGL)vsRoyalty Pharma Plc (RPRX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royalty Pharma Plc generates 116% more annual revenue ($2.44B vs $1.13B). RPRX leads profitability with a 33.9% profit margin vs -27.3%. RPRX earns a higher WallStSmart Score of 65/100 (C+).

MDGL

Avoid

31

out of 100

Grade: F

Growth: 6.3Profit: 2.0Value: 5.0Quality: 5.5
Piotroski: 3/9Altman Z: -0.82

RPRX

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.0Quality: 5.0
Piotroski: 2/9Altman Z: 1.15
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MDGL.

RPRXSignificantly Overvalued (-59.6%)

Margin of Safety

-59.6%

Fair Value

$34.38

Current Price

$55.02

$20.64 premium

UndervaluedFair: $34.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MDGL1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
126.8%10/10

Revenue surging 126.8% year-over-year

RPRX3 strengths · Avg: 9.3/10
Profit MarginProfitability
33.9%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
100.3%10/10

Strong operational efficiency at 100.3%

EPS GrowthGrowth
23.2%8/10

Earnings expanding 23.2% YoY

Areas to Watch

MDGL4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
20.9x2/10

Trading at 20.9x book value

Return on EquityProfitability
-56.9%2/10

ROE of -56.9% — below average capital efficiency

RPRX4 concerns · Avg: 3.5/10
PEG RatioValuation
2.054/10

Expensive relative to growth rate

P/E RatioValuation
28.9x4/10

Moderate valuation

Debt/EquityHealth
1.303/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : MDGL

The strongest argument for MDGL centers on Revenue Growth. Revenue growth of 126.8% demonstrates continued momentum.

Bull Case : RPRX

The strongest argument for RPRX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 33.9% and operating margin at 100.3%. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : MDGL

The primary concerns for MDGL are EPS Growth, Piotroski F-Score, Price/Book.

Bear Case : RPRX

The primary concerns for RPRX are PEG Ratio, P/E Ratio, Debt/Equity.

Key Dynamics to Monitor

MDGL profiles as a hypergrowth stock while RPRX is a mature play — different risk/reward profiles.

RPRX carries more volatility with a beta of 0.42 — expect wider price swings.

MDGL is growing revenue faster at 126.8% — sustainability is the question.

RPRX generates stronger free cash flow (761M), providing more financial flexibility.

Bottom Line

RPRX scores higher overall (65/100 vs 31/100), backed by strong 33.9% margins and 11.0% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Madrigal Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Madrigal Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapeutic candidates for the treatment of cardiovascular, metabolic and liver diseases. The company is headquartered in West Conshohocken, Pennsylvania.

Royalty Pharma Plc

HEALTHCARE · BIOTECHNOLOGY · USA

Royalty Pharma plc is a buyer of biopharmaceutical royalties and funder of innovations in the biopharmaceutical industry in the United States. The company is headquartered in New York, New York.

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