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BIIB vs VRTX
Revenue, margins, valuation, and 5-year total return — side by side.
Biotechnology
BIIB vs VRTX — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Drug Manufacturers - General | Biotechnology |
| Market Cap | $28.15B | $108.78B |
| Revenue (TTM) | $9.86B | $12.26B |
| Net Income (TTM) | $1.37B | $4.34B |
| Gross Margin | 69.8% | 86.3% |
| Operating Margin | 15.6% | 39.0% |
| Forward P/E | 13.0x | 22.3x |
| Total Debt | $6.95B | $3.88B |
| Cash & Equiv. | $3.01B | $5.09B |
BIIB vs VRTX — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Biogen Inc. (BIIB) | 100 | 62.1 | -37.9% |
| Vertex Pharmaceutic… (VRTX) | 100 | 148.5 | +48.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: BIIB vs VRTX
Each card shows where this stock fits in a portfolio — not just who wins on paper.
BIIB has the current edge in this matchup, primarily because of its strength in income & stability and sleep-well-at-night.
- Dividend streak 0 yrs, beta 0.64
- Lower volatility, beta 0.64, Low D/E 38.1%, current ratio 2.68x
- Beta 0.64, current ratio 2.68x
VRTX is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 9.6%, EPS growth 8.4%, 3Y rev CAGR 10.6%
- 399.9% 10Y total return vs BIIB's -27.7%
- 9.6% revenue growth vs BIIB's 1.4%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 9.6% revenue growth vs BIIB's 1.4% | |
| Value | Lower P/E (13.0x vs 22.3x) | |
| Quality / Margins | 35.4% margin vs BIIB's 13.9% | |
| Stability / Safety | Beta 0.64 vs VRTX's 0.82 | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | +63.2% vs VRTX's -5.0% | |
| Efficiency (ROA) | 17.1% ROA vs BIIB's 4.7%, ROIC 23.0% vs 6.5% |
BIIB vs VRTX — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
BIIB vs VRTX — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
VRTX leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
VRTX and BIIB operate at a comparable scale, with $12.3B and $9.9B in trailing revenue. VRTX is the more profitable business, keeping 35.4% of every revenue dollar as net income compared to BIIB's 13.9%. On growth, VRTX holds the edge at +7.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $9.9B | $12.3B |
| EBITDAEarnings before interest/tax | $2.4B | $4.9B |
| Net IncomeAfter-tax profit | $1.4B | $4.3B |
| Free Cash FlowCash after capex | $2.6B | $3.7B |
| Gross MarginGross profit ÷ Revenue | +69.8% | +86.3% |
| Operating MarginEBIT ÷ Revenue | +15.6% | +39.0% |
| Net MarginNet income ÷ Revenue | +13.9% | +35.4% |
| FCF MarginFCF ÷ Revenue | +26.6% | +30.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.9% | +7.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +31.1% | +61.4% |
Valuation Metrics
BIIB leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 21.6x trailing earnings, BIIB trades at a 23% valuation discount to VRTX's 27.9x P/E. On an enterprise value basis, BIIB's 11.4x EV/EBITDA is more attractive than VRTX's 21.7x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $28.2B | $108.8B |
| Enterprise ValueMkt cap + debt − cash | $32.1B | $107.6B |
| Trailing P/EPrice ÷ TTM EPS | 21.59x | 27.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 13.00x | 22.32x |
| PEG RatioP/E ÷ EPS growth rate | — | 3.37x |
| EV / EBITDAEnterprise value multiple | 11.41x | 21.65x |
| Price / SalesMarket cap ÷ Revenue | 2.87x | 9.01x |
| Price / BookPrice ÷ Book value/share | 1.53x | 5.91x |
| Price / FCFMarket cap ÷ FCF | 13.73x | 34.06x |
Profitability & Efficiency
VRTX leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
VRTX delivers a 23.9% return on equity — every $100 of shareholder capital generates $24 in annual profit, vs $8 for BIIB. VRTX carries lower financial leverage with a 0.21x debt-to-equity ratio, signaling a more conservative balance sheet compared to BIIB's 0.38x. On the Piotroski fundamental quality scale (0–9), BIIB scores 5/9 vs VRTX's 4/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +7.5% | +23.9% |
| ROA (TTM)Return on assets | +4.7% | +17.1% |
| ROICReturn on invested capital | +6.5% | +23.0% |
| ROCEReturn on capital employed | +7.7% | +23.1% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.38x | 0.21x |
| Net DebtTotal debt minus cash | $3.9B | -$1.2B |
| Cash & Equiv.Liquid assets | $3.0B | $5.1B |
| Total DebtShort + long-term debt | $6.9B | $3.9B |
| Interest CoverageEBIT ÷ Interest expense | 6.91x | 488.09x |
Total Returns (Dividends Reinvested)
VRTX leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in VRTX five years ago would be worth $20,062 today (with dividends reinvested), compared to $7,007 for BIIB. Over the past 12 months, BIIB leads with a +63.2% total return vs VRTX's -5.0%. The 3-year compound annual growth rate (CAGR) favors VRTX at 7.5% vs BIIB's -15.4% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +7.2% | -5.4% |
| 1-Year ReturnPast 12 months | +63.2% | -5.0% |
| 3-Year ReturnCumulative with dividends | -39.3% | +24.3% |
| 5-Year ReturnCumulative with dividends | -29.9% | +100.6% |
| 10-Year ReturnCumulative with dividends | -27.7% | +399.9% |
| CAGR (3Y)Annualised 3-year return | -15.4% | +7.5% |
Risk & Volatility
BIIB leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
BIIB is the less volatile stock with a 0.64 beta — it tends to amplify market swings less than VRTX's 0.82 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. BIIB currently trades 94.2% from its 52-week high vs VRTX's 84.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.64x | 0.82x |
| 52-Week HighHighest price in past year | $202.41 | $507.92 |
| 52-Week LowLowest price in past year | $115.25 | $362.50 |
| % of 52W HighCurrent price vs 52-week peak | +94.2% | +84.2% |
| RSI (14)Momentum oscillator 0–100 | 55.1 | 40.4 |
| Avg Volume (50D)Average daily shares traded | 1.1M | 1.2M |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates BIIB as "Buy" and VRTX as "Buy". Consensus price targets imply 29.1% upside for VRTX (target: $552) vs 10.9% for BIIB (target: $211).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $211.42 | $552.27 |
| # AnalystsCovering analysts | 48 | 56 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +1.9% |
VRTX leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). BIIB leads in 2 (Valuation Metrics, Risk & Volatility).
BIIB vs VRTX: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is BIIB or VRTX a better buy right now?
For growth investors, Vertex Pharmaceuticals Incorporated (VRTX) is the stronger pick with 9.
6% revenue growth year-over-year, versus 1. 4% for Biogen Inc. (BIIB). Biogen Inc. (BIIB) offers the better valuation at 21. 6x trailing P/E (13. 0x forward), making it the more compelling value choice. Analysts rate Biogen Inc. (BIIB) a "Buy" — based on 48 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — BIIB or VRTX?
On trailing P/E, Biogen Inc.
(BIIB) is the cheapest at 21. 6x versus Vertex Pharmaceuticals Incorporated at 27. 9x. On forward P/E, Biogen Inc. is actually cheaper at 13. 0x.
03Which is the better long-term investment — BIIB or VRTX?
Over the past 5 years, Vertex Pharmaceuticals Incorporated (VRTX) delivered a total return of +100.
6%, compared to -29. 9% for Biogen Inc. (BIIB). Over 10 years, the gap is even starker: VRTX returned +399. 9% versus BIIB's -27. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — BIIB or VRTX?
By beta (market sensitivity over 5 years), Biogen Inc.
(BIIB) is the lower-risk stock at 0. 64β versus Vertex Pharmaceuticals Incorporated's 0. 82β — meaning VRTX is approximately 28% more volatile than BIIB relative to the S&P 500. On balance sheet safety, Vertex Pharmaceuticals Incorporated (VRTX) carries a lower debt/equity ratio of 21% versus 38% for Biogen Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — BIIB or VRTX?
By revenue growth (latest reported year), Vertex Pharmaceuticals Incorporated (VRTX) is pulling ahead at 9.
6% versus 1. 4% for Biogen Inc. (BIIB). On earnings-per-share growth, the picture is similar: Vertex Pharmaceuticals Incorporated grew EPS 836. 5% year-over-year, compared to -21. 1% for Biogen Inc.. Over a 3-year CAGR, VRTX leads at 10. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — BIIB or VRTX?
Vertex Pharmaceuticals Incorporated (VRTX) is the more profitable company, earning 32.
7% net margin versus 13. 2% for Biogen Inc. — meaning it keeps 32. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: VRTX leads at 39. 4% versus 19. 1% for BIIB. At the gross margin level — before operating expenses — VRTX leads at 85. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is BIIB or VRTX more undervalued right now?
On forward earnings alone, Biogen Inc.
(BIIB) trades at 13. 0x forward P/E versus 22. 3x for Vertex Pharmaceuticals Incorporated — 9. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for VRTX: 29. 1% to $552. 27.
08Which pays a better dividend — BIIB or VRTX?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is BIIB or VRTX better for a retirement portfolio?
For long-horizon retirement investors, Vertex Pharmaceuticals Incorporated (VRTX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
82), +399. 9% 10Y return). Both have compounded well over 10 years (VRTX: +399. 9%, BIIB: -27. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between BIIB and VRTX?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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