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Which is a Better Investment: Pfizer or BioNTech?


Investors who are eyeing coronavirus related stocks may be getting in a little late on the game, but there's still a good outlook for a healthy return on investments. The pharmaceutical companies that manufacture the vaccines are somewhat of a solid bet unless unforeseen complications arise shortly. With the need for vaccine production at its highest, due to a raging uncontrollable pandemic throughout the world, the need for production far exceeds the current capability of any one producer. Two of the leading manufacturers are Pfizer and BioNtech, but when it comes to investing in stocks, which is better?

Both have advantages and drawbacks

Pfizer and BioNTech are both well-positioned pharmaceutical companies in light of the ongoing Coronavirus pandemic. Although they both produce the highly prized and in demand vaccines that are in short supply, they're two very different companies. The best way to determine which stock is the best investment option is to weigh the pros and cons of each and stack them up.

What makes Pfizer and BioNTech different?

While the similarities between the two companies are fairly obvious, some distinctions separate them. Pfizer has been in business as a pharmaceutical producer for around 170 years. This gives it an edge when it comes to longevity. The company has a total of 92 assorted treatments in different stages of clinical trials. They have developed, produce, and market 49 separate drugs which bring in annual revenue of $52 billion. According to the Motley Fool, Pfizer stock is categorized as blue-chip. It has remained in this classification since the year 2013 with sales remarkably stable, however, the company has taken steps to advance with the times. Pfizer merged with Upjohn, another notable pharmaceutical company along with the Mylan company to develop a new publicly traded business called Viatris. The latter focuses on the development, production, and marketing of oncology drugs and vaccines. Pfizer has not seen growth or decline since 2013, but they're hoping for a return to a growth cycle in the near future.

BioNtech has only been in operation since 2008. The company lacks the history of Pfizer regarding longevity. The sales are not nearly as high for BioNTech either. It has not established the number of collaborative agreements, nor has it produced as many commercialized drugs. Regardless, it's not doing bade with a market cap of $26 billion. BioNTech is in a strategic position to increase its revenue yet further with the development, production, and marketing of the Covid-19 vaccine. This is just one of the promising treatments that BioNTech has in its pipeline. There is also sufficient excitement over BioNTech's other areas of focus. They're working on a gene-based approach to skin cancer treatment. It's currently working on cancer treatments for the head, neck, breasts, ovaries, lungs, and solid tumors. An early-stage flu vaccine is also being developed in a partnership with Pfizer as a collaborative venture. BioNTech acquired Array Pharmaceuticals in an 11.4 billion dollar deal to expand its cancer drug-making division.

From mall appearances, BioNTech is a smaller company that hasn't been in operation as long as Pfizer. It's essential to note that neither has it experience the long period of stagnation in growth that we've seen for the past 8 years in Pfizer. Although the stock has not plummeted, neither has it made any significant jumps in value. It's one of those situations where the company has established multiple goals. In addition, Pfizer is meeting internal objectives for stability, yet it's not growing in revenues.

Other factors for consideration

According to Nasdaq, there are intangible factors that may help you decide which stock may be the best option for your portfolio. Pfizer is the larger of the two companies with a long history with stable performance. It's formed multiple partnerships through the years. BioNTech is backed by some large investors as well. The Bill & Melinda Gates Foundation is a major investor. The company also partners with Eli Lilly, Sanofi, Regeneron, Bayer, Roche, and Genmab. They also partnered with Pfizer on a flu vaccine. Pfizer is in the throes of trying to get back on track while BioNTech is on its way up the ladder. According to Barrons, Pfizer stock may have reached its limit already, according to an analyst. For many investors, this is not an indication that Pfizer is the better of the two stocks to purchase. The outlook for a healthy return on investment just isn't there as of now. If Pfizer continues to maintain the status quo with no growth, it makes better sense to invest in a company with better growth potential, such as BioNTech.

Final thoughts

Any investment in the stock market is a gamble. One of the most frequently asked questions for early 2021 is which stock is better, Pfizer or BioNTech? Both companies have their advantages and drawbacks, but from all appearances, it looks like BioNTech is the most likely to experience some type of growth. Pfizer has been stuck on a plateau for over seven years and has not seen any real growth to speak of, while BioNTech is more of an up and coming business that has a lot of exiting drugs in its pipeline. Sometimes the newer companies offer a better potential for receiving a higher ROI on an investment in its stocks. None of us has a crystal ball to see the future, and analysts can only use the known facts to make their projections. For now, most are placing their bets on ioNTech as the better choice for inclusion in an investment portfolio. if you're considering making this type of investment, it's always a good idea to consult with your financial advisor to weigh the pros and cons of both stocks. This can help you to determine which stock might be the best choice for your individual portfolio. As it stands, we're going with BioNTech for 2021.

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Allen Lee

Written by Allen Lee

Allen Lee is a Toronto-based freelance writer who studied business in school but has since turned to other pursuits. He spends more time than is perhaps wise with his eyes fixed on a screen either reading history books, keeping up with international news, or playing the latest releases on the Steam platform, which serve as the subject matter for much of his writing output. Currently, Lee is practicing the smidgen of Chinese that he picked up while visiting the Chinese mainland in hopes of someday being able to read certain historical texts in their original language.

Read more posts by Allen Lee

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