Vertex Pharmaceuticals Inc (VRTX)vsXOMA Corp (XOMA)
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
XOMA
XOMA Corp
$29.22
-1.85%
HEALTHCARE · Cap: $355.52M
Smart Verdict
WallStSmart Research — data-driven comparison
Vertex Pharmaceuticals Inc generates 22913% more annual revenue ($12.00B vs $52.15M). XOMA leads profitability with a 60.8% profit margin vs 32.9%. VRTX trades at a lower P/E of 29.3x. VRTX earns a higher WallStSmart Score of 66/100 (B-).
VRTX
Strong Buy66
out of 100
Grade: B-
XOMA
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 discount
Margin of Safety
-356.3%
Fair Value
$5.10
Current Price
$29.22
$24.12 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Every $100 of equity generates 34 in profit
Keeps 61 of every $100 in revenue as profit
Revenue surging 57.9% year-over-year
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Elevated debt levels
Earnings declined 47.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
Bull Case : XOMA
The strongest argument for XOMA centers on Return on Equity, Profit Margin, Revenue Growth. Profitability is solid with margins at 60.8% and operating margin at 15.9%. Revenue growth of 57.9% demonstrates continued momentum.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Bear Case : XOMA
The primary concerns for XOMA are P/E Ratio, Market Cap, Debt/Equity.
Key Dynamics to Monitor
VRTX profiles as a mature stock while XOMA is a growth play — different risk/reward profiles.
XOMA carries more volatility with a beta of 0.83 — expect wider price swings.
XOMA is growing revenue faster at 57.9% — sustainability is the question.
VRTX generates stronger free cash flow (349M), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 57/100), backed by strong 32.9% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
XOMA Corp
HEALTHCARE · BIOTECHNOLOGY · USA
XOMA Corporation, a biotech royalty aggregator, discovers and develops therapeutic candidates in the United States, Europe, and Asia Pacific. The company is headquartered in Emeryville, California.
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