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▲ SpaceX (SPCX), Vertex Pharmaceuticals (VRTX)/AI-generated image
While SpaceX (SpaceX, SPCX) monopolizes the stock market spotlight, some investors are turning their attention to other stocks. Motley Fool has named Vertex Pharmaceuticals (Vertex Pharmaceuticals, VRTX) a more attractive risk-reward option.
According to U.S. investment media outlet Motley Fool on July 5 (local time), SpaceX attracted market attention with its largest-ever IPO. However, Motley Fool stated that hype does not guarantee high returns, and assessed Vertex's core market dominance as stronger than SpaceX's.
Vertex sells all five approved therapies that treat the underlying genetic causes of cystic fibrosis (CF), a rare genetic disease affecting approximately 105,000 people worldwide. The core U.S. and European patents for its flagship therapy, Kalydeco, do not expire until 2039. Unlike SpaceX, where Amazon's (Amazon, AMZN) Project Kuiper is emerging as a Starlink competitor, Vertex's main competitive candidates are still in Phase 2 clinical trials.
The profitability gap is also clear. Vertex reported $4.7 billion in adjusted earnings last year, while SpaceX posted a net loss of $4.9 billion. The gene-editing therapy Casgevy and the non-opioid painkiller Zurzurg were responsible for approximately 25% of Vertex's product revenue growth in the recent quarter.
The new drug pipeline is also central to the investment thesis. The U.S. Food and Drug Administration (FDA) is expected to decide on the approval of povetacicept, a treatment for immunoglobulin A nephropathy, by November 30, 2026. If it succeeds in expanding its indication to treat diabetic peripheral neuropathy, Zurzurg could enter a market of approximately 2.5 million additional patients. Inaxaplin, a candidate for APOL1-mediated kidney disease for which there is no approved treatment, is also in late-stage clinical trials.
The valuation gap widens further. SpaceX is valued at 56.7 times its estimated 2026 revenue, while Vertex's forward price-to-sales ratio is approximately 10 times. Motley Fool acknowledged the risks of regulatory setbacks and clinical failures, but assessed Vertex's risk-reward appeal as higher than SpaceX's, given its existing clinical results and approved products.
[Article Key Summary]
-Motley Fool assessed Vertex Pharmaceuticals' core market dominance as stronger than SpaceX's.
-Vertex reported $4.7 billion in adjusted earnings last year, while SpaceX posted a net loss of $4.9 billion.
-SpaceX's valuation multiple relative to its estimated 2026 revenue is 56.7 times, while Vertex's forward price-to-sales ratio is approximately 10 times.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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