Vertex Pharmaceuticals Inc (VRTX)vsYum! Brands Inc (YUM)
VRTX
Vertex Pharmaceuticals Inc
$429.82
+1.13%
HEALTHCARE · Cap: $107.87B
YUM
Yum! Brands Inc
$151.95
-3.37%
CONSUMER CYCLICAL · Cap: $43.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Vertex Pharmaceuticals Inc generates 44% more annual revenue ($12.22B vs $8.49B). VRTX leads profitability with a 35.5% profit margin vs 20.5%. YUM appears more attractively valued with a PEG of 1.93. VRTX earns a higher WallStSmart Score of 66/100 (B-).
VRTX
Strong Buy66
out of 100
Grade: B-
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.2%
Fair Value
$992.87
Current Price
$429.82
$563.05 discount
Margin of Safety
-76.3%
Fair Value
$90.20
Current Price
$151.95
$61.75 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 38.1%
Earnings expanding 61.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Strong operational efficiency at 31.0%
Earnings expanding 72.2% YoY
Keeps 21 of every $100 in revenue as profit
15.2% revenue growth
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 35.5% and operating margin at 38.1%.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
VRTX profiles as a mature stock while YUM is a growth play — different risk/reward profiles.
YUM carries more volatility with a beta of 0.60 — expect wider price swings.
YUM is growing revenue faster at 15.2% — sustainability is the question.
VRTX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 65/100), backed by strong 35.5% 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.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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