WallStSmart

Apellis Pharmaceuticals Inc (APLS)vsRoyalty Pharma Plc (RPRX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royalty Pharma Plc generates 121% more annual revenue ($2.44B vs $1.11B). RPRX leads profitability with a 33.9% profit margin vs 12.1%. RPRX trades at a lower P/E of 28.9x. RPRX earns a higher WallStSmart Score of 65/100 (C+).

APLS

Buy

50

out of 100

Grade: C-

Growth: 8.0Profit: 7.5Value: 6.3Quality: 5.5
Piotroski: 5/9Altman Z: -2.39

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

APLSUndervalued (+88.5%)

Margin of Safety

+88.5%

Fair Value

$194.37

Current Price

$41.03

$153.34 discount

UndervaluedFair: $194.37Overvalued
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

APLS2 strengths · Avg: 10.0/10
Return on EquityProfitability
33.2%10/10

Every $100 of equity generates 33 in profit

Revenue GrowthGrowth
60.9%10/10

Revenue surging 60.9% 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

APLS4 concerns · Avg: 3.8/10
P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.7x4/10

Trading at 12.7x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Debt/EquityHealth
1.183/10

Elevated debt levels

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 : APLS

The strongest argument for APLS centers on Return on Equity, Revenue Growth. Revenue growth of 60.9% 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 : APLS

The primary concerns for APLS are P/E Ratio, Price/Book, EPS Growth.

Bear Case : RPRX

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

Key Dynamics to Monitor

APLS profiles as a growth 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.

APLS is growing revenue faster at 60.9% — sustainability is the question.

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

Bottom Line

RPRX scores higher overall (65/100 vs 50/100), backed by strong 33.9% margins and 11.0% revenue growth. APLS offers better value entry with a 88.5% margin of safety. Both earn "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.

Apellis Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Apellis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic compounds through inhibition of the complement system for autoimmune and inflammatory diseases. The company is headquartered in Waltham, Massachusetts.

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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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