Biotechnology
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VRTX vs ALNY
Revenue, margins, valuation, and 5-year total return — side by side.
Biotechnology
VRTX vs ALNY — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Biotechnology | Biotechnology |
| Market Cap | $108.78B | $40.43B |
| Revenue (TTM) | $12.26B | $4.29B |
| Net Income (TTM) | $4.34B | $577M |
| Gross Margin | 86.3% | 80.9% |
| Operating Margin | 39.0% | 17.5% |
| Forward P/E | 22.3x | 45.2x |
| Total Debt | $3.88B | $1.28B |
| Cash & Equiv. | $5.09B | $1.66B |
VRTX vs ALNY — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Vertex Pharmaceutic… (VRTX) | 100 | 148.5 | +48.5% |
| Alnylam Pharmaceuti… (ALNY) | 100 | 224.0 | +124.0% |
Price return only. Dividends and distributions are not included.
Quick Verdict: VRTX vs ALNY
Each card shows where this stock fits in a portfolio — not just who wins on paper.
VRTX has the current edge in this matchup, primarily because of its strength in sleep-well-at-night.
- Lower volatility, beta 0.82, Low D/E 20.8%, current ratio 2.90x
- Lower P/E (22.3x vs 45.2x)
- 35.4% margin vs ALNY's 13.5%
ALNY is the clearest fit if your priority is income & stability and growth exposure.
- beta 0.71
- Rev growth 65.2%, EPS growth 206.9%, 3Y rev CAGR 53.0%
- 445.5% 10Y total return vs VRTX's 399.9%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 65.2% revenue growth vs VRTX's 9.6% | |
| Value | Lower P/E (22.3x vs 45.2x) | |
| Quality / Margins | 35.4% margin vs ALNY's 13.5% | |
| Stability / Safety | Beta 0.71 vs VRTX's 0.82 | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | +12.3% vs VRTX's -5.0% | |
| Efficiency (ROA) | 17.1% ROA vs ALNY's 11.8%, ROIC 23.0% vs 33.4% |
VRTX vs ALNY — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
VRTX vs ALNY — 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 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
VRTX is the larger business by revenue, generating $12.3B annually — 2.9x ALNY's $4.3B. VRTX is the more profitable business, keeping 35.4% of every revenue dollar as net income compared to ALNY's 13.5%. On growth, ALNY holds the edge at +96.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $12.3B | $4.3B |
| EBITDAEarnings before interest/tax | $4.9B | $677M |
| Net IncomeAfter-tax profit | $4.3B | $577M |
| Free Cash FlowCash after capex | $3.7B | $641M |
| Gross MarginGross profit ÷ Revenue | +86.3% | +80.9% |
| Operating MarginEBIT ÷ Revenue | +39.0% | +17.5% |
| Net MarginNet income ÷ Revenue | +35.4% | +13.5% |
| FCF MarginFCF ÷ Revenue | +30.3% | +15.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +7.8% | +96.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +61.4% | +4.4% |
Valuation Metrics
VRTX leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 27.9x trailing earnings, VRTX trades at a 79% valuation discount to ALNY's 130.0x P/E. On an enterprise value basis, VRTX's 21.7x EV/EBITDA is more attractive than ALNY's 71.9x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $108.8B | $40.4B |
| Enterprise ValueMkt cap + debt − cash | $107.6B | $40.0B |
| Trailing P/EPrice ÷ TTM EPS | 27.91x | 130.04x |
| Forward P/EPrice ÷ next-FY EPS est. | 22.32x | 45.24x |
| PEG RatioP/E ÷ EPS growth rate | 3.37x | — |
| EV / EBITDAEnterprise value multiple | 21.65x | 71.87x |
| Price / SalesMarket cap ÷ Revenue | 9.01x | 10.89x |
| Price / BookPrice ÷ Book value/share | 5.91x | 51.71x |
| Price / FCFMarket cap ÷ FCF | 34.06x | 86.87x |
Profitability & Efficiency
VRTX leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
ALNY delivers a 98.3% return on equity — every $100 of shareholder capital generates $98 in annual profit, vs $24 for VRTX. VRTX carries lower financial leverage with a 0.21x debt-to-equity ratio, signaling a more conservative balance sheet compared to ALNY's 1.62x. On the Piotroski fundamental quality scale (0–9), ALNY scores 6/9 vs VRTX's 4/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +23.9% | +98.3% |
| ROA (TTM)Return on assets | +17.1% | +11.8% |
| ROICReturn on invested capital | +23.0% | +33.4% |
| ROCEReturn on capital employed | +23.1% | +15.3% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 6 |
| Debt / EquityFinancial leverage | 0.21x | 1.62x |
| Net DebtTotal debt minus cash | -$1.2B | -$379M |
| Cash & Equiv.Liquid assets | $5.1B | $1.7B |
| Total DebtShort + long-term debt | $3.9B | $1.3B |
| Interest CoverageEBIT ÷ Interest expense | 488.09x | 2.02x |
Total Returns (Dividends Reinvested)
ALNY leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ALNY five years ago would be worth $22,937 today (with dividends reinvested), compared to $20,062 for VRTX. Over the past 12 months, ALNY leads with a +12.3% total return vs VRTX's -5.0%. The 3-year compound annual growth rate (CAGR) favors ALNY at 13.0% vs VRTX's 7.5% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -5.4% | -24.3% |
| 1-Year ReturnPast 12 months | -5.0% | +12.3% |
| 3-Year ReturnCumulative with dividends | +24.3% | +44.3% |
| 5-Year ReturnCumulative with dividends | +100.6% | +129.4% |
| 10-Year ReturnCumulative with dividends | +399.9% | +445.5% |
| CAGR (3Y)Annualised 3-year return | +7.5% | +13.0% |
Risk & Volatility
Evenly matched — VRTX and ALNY each lead in 1 of 2 comparable metrics.
Risk & Volatility
ALNY is the less volatile stock with a 0.71 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. VRTX currently trades 84.2% from its 52-week high vs ALNY's 61.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.82x | 0.71x |
| 52-Week HighHighest price in past year | $507.92 | $495.55 |
| 52-Week LowLowest price in past year | $362.50 | $245.96 |
| % of 52W HighCurrent price vs 52-week peak | +84.2% | +61.1% |
| RSI (14)Momentum oscillator 0–100 | 40.4 | 42.4 |
| Avg Volume (50D)Average daily shares traded | 1.2M | 1.1M |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates VRTX as "Buy" and ALNY as "Buy". Consensus price targets imply 47.1% upside for ALNY (target: $446) vs 29.1% for VRTX (target: $552).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $552.27 | $445.67 |
| # AnalystsCovering analysts | 56 | 52 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.9% | 0.0% |
VRTX leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). ALNY leads in 1 (Total Returns). 1 tied.
VRTX vs ALNY: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is VRTX or ALNY a better buy right now?
For growth investors, Alnylam Pharmaceuticals, Inc.
(ALNY) is the stronger pick with 65. 2% revenue growth year-over-year, versus 9. 6% for Vertex Pharmaceuticals Incorporated (VRTX). Vertex Pharmaceuticals Incorporated (VRTX) offers the better valuation at 27. 9x trailing P/E (22. 3x forward), making it the more compelling value choice. Analysts rate Vertex Pharmaceuticals Incorporated (VRTX) a "Buy" — based on 56 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 — VRTX or ALNY?
On trailing P/E, Vertex Pharmaceuticals Incorporated (VRTX) is the cheapest at 27.
9x versus Alnylam Pharmaceuticals, Inc. at 130. 0x. On forward P/E, Vertex Pharmaceuticals Incorporated is actually cheaper at 22. 3x.
03Which is the better long-term investment — VRTX or ALNY?
Over the past 5 years, Alnylam Pharmaceuticals, Inc.
(ALNY) delivered a total return of +129. 4%, compared to +100. 6% for Vertex Pharmaceuticals Incorporated (VRTX). Over 10 years, the gap is even starker: ALNY returned +445. 5% versus VRTX's +399. 9%. 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 — VRTX or ALNY?
By beta (market sensitivity over 5 years), Alnylam Pharmaceuticals, Inc.
(ALNY) is the lower-risk stock at 0. 71β versus Vertex Pharmaceuticals Incorporated's 0. 82β — meaning VRTX is approximately 16% more volatile than ALNY relative to the S&P 500. On balance sheet safety, Vertex Pharmaceuticals Incorporated (VRTX) carries a lower debt/equity ratio of 21% versus 162% for Alnylam Pharmaceuticals, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — VRTX or ALNY?
By revenue growth (latest reported year), Alnylam Pharmaceuticals, Inc.
(ALNY) is pulling ahead at 65. 2% versus 9. 6% for Vertex Pharmaceuticals Incorporated (VRTX). On earnings-per-share growth, the picture is similar: Vertex Pharmaceuticals Incorporated grew EPS 836. 5% year-over-year, compared to 206. 9% for Alnylam Pharmaceuticals, Inc.. Over a 3-year CAGR, ALNY leads at 53. 0% 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 — VRTX or ALNY?
Vertex Pharmaceuticals Incorporated (VRTX) is the more profitable company, earning 32.
7% net margin versus 8. 4% for Alnylam Pharmaceuticals, 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 13. 5% for ALNY. 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 VRTX or ALNY more undervalued right now?
On forward earnings alone, Vertex Pharmaceuticals Incorporated (VRTX) trades at 22.
3x forward P/E versus 45. 2x for Alnylam Pharmaceuticals, Inc. — 22. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ALNY: 47. 1% to $445. 67.
08Which pays a better dividend — VRTX or ALNY?
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 VRTX or ALNY better for a retirement portfolio?
For long-horizon retirement investors, Alnylam Pharmaceuticals, Inc.
(ALNY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 71), +445. 5% 10Y return). Both have compounded well over 10 years (ALNY: +445. 5%, VRTX: +399. 9%), 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 VRTX and ALNY?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: VRTX is a mid-cap quality compounder stock; ALNY is a mid-cap high-growth stock. 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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