WallStSmart

Heron Therapeuti (HRTX)vsRoyalty Pharma Plc (RPRX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royalty Pharma Plc generates 1583% more annual revenue ($2.54B vs $150.71M). RPRX leads profitability with a 32.0% profit margin vs -20.5%. RPRX earns a higher WallStSmart Score of 53/100 (C-).

HRTX

Avoid

27

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 5.0Quality: 4.5
Piotroski: 4/9Altman Z: -9.57

RPRX

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 3.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.15
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HRTX.

RPRXSignificantly Overvalued (-60.9%)

Margin of Safety

-60.9%

Fair Value

$36.41

Current Price

$59.45

$23.04 premium

UndervaluedFair: $36.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HRTX0 strengths · Avg: 0/10

No standout strengths identified

RPRX3 strengths · Avg: 8.7/10
Profit MarginProfitability
32.0%10/10

Keeps 32 of every $100 in revenue as profit

Revenue GrowthGrowth
16.5%8/10

16.5% revenue growth

Free Cash FlowQuality
$1.45B8/10

Generating 1.4B in free cash flow

Areas to Watch

HRTX4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$92.90M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-338.6%2/10

ROE of -338.6% — below average capital efficiency

Revenue GrowthGrowth
-10.8%2/10

Revenue declined 10.8%

RPRX4 concerns · Avg: 3.3/10
PEG RatioValuation
2.054/10

Expensive relative to growth rate

P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-46.3%2/10

Earnings declined 46.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : HRTX

HRTX has a balanced fundamental profile.

Bull Case : RPRX

The strongest argument for RPRX centers on Profit Margin, Revenue Growth, Free Cash Flow. Profitability is solid with margins at 32.0% and operating margin at 19.8%. Revenue growth of 16.5% demonstrates continued momentum.

Bear Case : HRTX

The primary concerns for HRTX are EPS Growth, Market Cap, Return on Equity. Debt-to-equity of 21.48 is elevated, increasing financial risk.

Bear Case : RPRX

The primary concerns for RPRX are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

HRTX profiles as a turnaround stock while RPRX is a growth play — different risk/reward profiles.

HRTX carries more volatility with a beta of 1.67 — expect wider price swings.

RPRX is growing revenue faster at 16.5% — sustainability is the question.

RPRX generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

RPRX scores higher overall (53/100 vs 27/100), backed by strong 32.0% margins and 16.5% 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.

Heron Therapeuti

HEALTHCARE · BIOTECHNOLOGY · USA

Heron Therapeutics, Inc., a biotechnology company, is dedicated to developing treatments to address unmet medical needs. The company is headquartered in San Diego, California.

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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