Incyte vs Vertex Pharmaceuticals
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KIRA’s take AI analyst
I put Incyte and Vertex Pharmaceuticals side by side, using each one’s latest annual report. Here is what stands out:
- Vertex Pharmaceuticals is the larger business, with $12.0B of revenue in fiscal 2025 against $5.1B for Incyte, about 2.3 times as much.
- Incyte grew revenue faster (21.2%, against 8.9%).
- Vertex Pharmaceuticals kept more of each dollar of sales as operating profit (34.8% operating margin, against 29.5%).
- Incyte earned a higher return on the capital invested in it (79.4%, against 31.5%).
- Investors pay more for each dollar of Vertex Pharmaceuticals’s earnings: a P/E of 30.1x against 16.0x for Incyte.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Incyte
INCY
7/11
Revenue growthGross marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Vertex Pharmaceuticals
VRTX
4/11
5-year growthOperating marginNet marginFCF margin
Side by side
Best in the row
| Latest fiscal year | INCY FY25 | VRTX FY25 |
|---|---|---|
| Size | ||
| Market cap | $23.4B | $132.1B |
| Revenue | $5.1B | $12.0B |
| Free cash flow | $1.4B | $3.2B |
| Net income | $1.3B | $4.0B |
| Growth | ||
| Revenue growth | 21.2% | 8.9% |
| 5-year growth | 14.0% | 14.1% |
| Share count change | −4.7% | 0.0% |
| Profitability | ||
| Gross margin | 92.8% | 86.2% |
| Operating margin | 29.5% | 34.8% |
| Net margin | 25.0% | 32.9% |
| FCF margin | 26.4% | 26.6% |
| Return on capital | 79.4% | 31.5% |
| Return on equity | 29.9% | 22.5% |
| Balance sheet | ||
| Net debt | −$3.5B | −$6.5B |
| Net debt / EBITDA | −2.2x | −1.5x |
| Dividends and buybacks | $0.0M | $2.0B |
| Valuation & quality | ||
| P/E | 16.0x | 30.1x |
| Piotroski F-score | 8 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.