XOMA vs RPRX

For growth investors, XOMA Royalty Corp.

(XOMA) is the stronger pick with 83. 1% revenue growth year-over-year, versus 5. 1% for Royalty Pharma plc (RPRX). Royalty Pharma plc (RPRX) offers the better valuation at 27. 9x trailing P/E (10. 3x forward), making it the more compelling value choice. Analysts rate XOMA Royalty Corp. (XOMA) a "Buy" — based on 10 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.

On trailing P/E, Royalty Pharma plc (RPRX) is the cheapest at 27.

9x versus XOMA Royalty Corp. at 28. 3x. On forward P/E, Royalty Pharma plc is actually cheaper at 10. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Royalty Pharma plc wins at 1. 45x versus XOMA Royalty Corp. 's 2. 75x — a reasonable growth-adjusted valuation.

Over the past 5 years, Royalty Pharma plc (RPRX) delivered a total return of +32.

4%, compared to +30. 0% for XOMA Royalty Corp. (XOMA). Over 10 years, the gap is even starker: XOMA returned +186. 7% versus RPRX's +22. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Royalty Pharma plc (RPRX) is the lower-risk stock at 0.

45β versus XOMA Royalty Corp. 's 1. 21β — meaning XOMA is approximately 167% more volatile than RPRX relative to the S&P 500. On balance sheet safety, Royalty Pharma plc (RPRX) carries a lower debt/equity ratio of 92% versus 157% for XOMA Royalty Corp. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), XOMA Royalty Corp.

(XOMA) is pulling ahead at 83. 1% versus 5. 1% for Royalty Pharma plc (RPRX). On earnings-per-share growth, the picture is similar: XOMA Royalty Corp. grew EPS 188. 5% year-over-year, compared to -5. 8% for Royalty Pharma plc. Over a 3-year CAGR, XOMA leads at 105. 3% 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.

XOMA Royalty Corp.

(XOMA) is the more profitable company, earning 60. 8% net margin versus 32. 4% for Royalty Pharma plc — meaning it keeps 60. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RPRX leads at 65. 6% versus 21. 8% for XOMA. At the gross margin level — before operating expenses — RPRX leads at 100. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Royalty Pharma plc (RPRX) is the more undervalued stock at a PEG of 1. 45x versus XOMA Royalty Corp. 's 2. 75x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Royalty Pharma plc (RPRX) trades at 10. 3x forward P/E versus 36. 7x for XOMA Royalty Corp. — 26. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for XOMA: 30. 2% to $53. 75.

All stocks in this comparison pay dividends.

Royalty Pharma plc (RPRX) offers the highest yield at 1. 3%, versus 0. 7% for XOMA Royalty Corp. (XOMA).

For long-horizon retirement investors, Royalty Pharma plc (RPRX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

45), 1. 3% yield). Both have compounded well over 10 years (RPRX: +22. 9%, XOMA: +186. 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.

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: XOMA is a small-cap high-growth stock; RPRX is a mid-cap quality compounder 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.