Stock Analysis & Ideas

Why Choosing Between Pfizer (NYSE:PFE) and Moderna Stocks Isn’t Easy for Investors

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Pfizer and Moderna have orders for tens of millions of upgraded COVID-19 vaccine booster doses. Wall Street mostly has the same view on Pfizer and Moderna stocks, but investors can turn to TipRanks’ insights to help them make their right pick.

UPDATE on August 31: The FDA has adjusted its emergency use authorizations of Moderna’s COVID-19 vaccine and the Pfizer-BioNTech COVID-19 vaccine. Now, the bivalent formulations of the vaccines may be used as single booster doses, at least two months after the previous booster or primary vaccination. This change will make the boosters widely available, and a booster campaign could start in the next few days.

Pfizer (PFE) and Moderna (MRNA) have come to dominate the COVID-19 vaccine business. As a result, PFE and MRNA stocks are the favorites of many investors seeking exposure to the vaccine makers. However, picking between Pfizer stock or Moderna stock may present a tough choice for investors. Although Wall Street has the same view on the stocks, price target predictions suggest varying upside potential. Moreover, while Pfizer is making more money from its COVID-19 business, it could end up splitting those sales with Moderna if the patent lawsuit settles against it.

Pfizer shares have declined about 17% year-to-date while Moderna shares have dropped about 42% over the same period. 

Moderna Hits Pfizer with Patent Infringement Lawsuit

In a move that stunned Pfizer, Moderna sued the rival together with its partner BioNTech (BNTX) for allegedly infringing its patents. Pfizer and Moderna based their COVID-19 vaccines on the messenger RNA (mRNA) technology. Moderna claims that Pfizer and BioNTech copied its mRNA technology to develop their version of the COVID-19 vaccine. Moderna is seeking damages in the lawsuit

Omicron Booster Shots Program Draws Fresh Attention to Pfizer and Moderna Stocks 

Pfizer and Moderna have modified their COVID-19 vaccines to come up with versions that are more effective against the stubborn Omicron virus variant. People in Europe and other parts of the world have started receiving the Omicron-specific booster shots. 

In the U.S., the modified shots are expected to be rolled out as part of the fall vaccine booster campaign. The U.S. Food and Drug Administration (FDA) is expected to clear the upgraded booster shot for rollout as soon as August 31. The shots will be authorized for use before their trials on humans are completed.

The fall vaccine booster campaign should generate additional sales for Pfizer and Moderna. The U.S. has ordered 175 million doses of the upgraded booster shots. The booster doses from Moderna will be given to adults, according to the Centers for Disease Control and Prevention (CDC). Pfizer booster doses will be offered to both adults and children up to 12 years old.

Pfizer and Moderna remain popular choices among COVID-19 vaccine stocks. Let’s take a closer look at Pfizer and Moderna stocks with the help of TipRanks insights to see which one may offer you a better deal. 

Moderna Expects $21 Billion in COVID-19 Vaccine Sales in 2022

The U.S. has ordered 66 million doses of the upgraded booster shots of Moderna’s COVID-19 vaccine targeting the Omicron variant. The deal is worth $1.74 billion. The U.S. may purchase an additional 234 million doses from Moderna for the fall booster program.  

Moderna generated $4.5 billion in COVID-19 vaccine sales in Q2 2022. The company expects to draw $21 billion in revenue from its COVID-19 vaccine business in 2022.

According to TipRanks’ analyst rating consensus, MRNA stock is a Moderate Buy based on four Buys, five Holds, and one Sell. The average Moderna stock price prediction of $217.89 implies 57.5% upside potential.

TipRanks’ Stock Investors tool shows that retail investor sentiment is currently Positive on Moderna. In the past 30 days, 1.7% of the top-performing portfolios tracked by TipRanks increased their exposure to MRNA stock.

Pfizer Secures U.S. Order for $3.2 Billion of Booster Shots

Turning on to Pfizer, the company has an order to supply the U.S. with 105 million booster doses for the fall rollout program. The deal is worth $3.2 billion. Aside from the COVID-19 vaccine, Pfizer also has a drug for COVID-19 treatment called Paxlovid. Pfizer expects its COVID-19 products to generate $54 billion in revenue in 2022.

According to TipRanks’ analyst rating consensus, PFE stock is a Moderate Buy based on four Buys and seven Holds. The average Pfizer stock forecast of $56.80 implies 23% upside potential.

TipRanks’ Stock Investors tool shows that retail investor sentiment is currently Positive on Pfizer. In the past 30 days, 1.2% of the top-performing portfolios tracked by TipRanks increased their exposure to PFE stock.

Closing Remarks

Wall Street has the same view on Pfizer and Moderna stocks. Therefore, the choice comes down mostly to individual investor’s taste. Moderna is more popular with TipRanks’ smart retail investors than Pfizer. Moreover, MRNA stock promises greater upside potential than PFE stock. Moderna stock may also benefit if the company’s patent infringement lawsuit against Pfizer succeeds. 

However, Pfizer pays dividends and currently offers a superior dividend yield of 3.4% versus 1.57% sector average. Therefore, PFE stock can provide you with an income in addition to growing your investment. Additionally, Pfizer has a more diversified business, while Moderna’s revenues are mostly tied to its COVID-19 products currently.

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