Moderna really deserves to be roughly half the size of Pfizer because of its stronger growth prospects. Moderna stock is overvalued. Pfizer stock is undervalued.
Full Answer
Is Moderna stock more than half the size of Pfizer?
There are basically four possible answers as to why Moderna is more than half the size of Pfizer right now: Moderna really deserves to be roughly half the size of Pfizer because of its stronger growth prospects. Moderna stock is overvalued.
Why is Moderna’s stock down 25% over the last two weeks?
Moderna’s (NASDAQ: MRNA) stock has declined by roughly 25% over the last two weeks. While news from the company has been largely positive, with its Covid-19 vaccine receiving emergency approval from the U.S. FDA and dosing starting in the U.S., the decline in the stock is likely largely technical.
Is Pfizer stock up or down over the last month?
However, Pfizer stock is up over the last month while the other two vaccine stocks have plunged more than 20%. Cuba Gooding, Jr.'s character in the movie Jerry Maguire had a famous line that seems applicable for Pfizer, BioNTech, and Moderna: "Show me the money."
Is Moderna Biotech stock overvalued?
The key question is whether or not Moderna is also overvalued. My view is that Moderna's messenger RNA (mRNA) platform gives the company tremendous growth potential over the long term. The biotech stock doesn't appear to be priced at a premium based on its forward earnings multiple of a little under 13.
Why is Moderna half the size of Pfizer?
There are basically four possible answers as to why Moderna is more than half the size of Pfizer right now: Moderna really deserves to be roughly half the size of Pfizer because of its stronger growth prospects. Moderna stock is overvalued. Pfizer stock is undervalued.
Why is Pfizer's valuation so low?
Part of the reason behind Pfizer's relatively low valuation is that several of its top products lose exclusivity beginning in 2025. However, I think that focusing just on this misses the bigger picture that includes Pfizer's pipeline, the potential for its COVID-19 vaccine to generate strong recurring sales, and the possibility that the company makes acquisitions that drive growth.
Who is Moderna's rival?
Pfizer ( NYSE:PFE) is Moderna's chief rival in the COVID-19 vaccine market. The drugmaker had half-a-dozen products that generated more than $1 billion in sales last year -- and that doesn't include its COVID-19 vaccine. It has scores of other products, too. Pfizer will probably rake in well over $70 billion this year.
Is Moderna bigger than Pfizer?
Moderna's market cap is more than half the size of Pfizer's despite lower revenue and a smaller pipeline.
Is biotech stock a premium?
The biotech stock doesn't appear to be priced at a premium based on its forward earnings multiple of a little under 13. However, I suspect that investors could be overly exuberant about the company's inclusion on the S&P 500 index.
Is Moderna overvalued?
In my opinion, there's one best answer to the question about how Moderna could be valued at more than half the size of Pfizer: Moderna is overvalued, while Pfizer is undervalued.
When will Moderna be added to the S&P 500?
And on Friday, investors cheered the news that Moderna was slated to be added to the popular S&P 500 index on July 21. It will replace Alexion Pharmaceuticals, which is being acquired by healthcare giant AstraZeneca.
Is Moderna a Johnson and Johnson?
So what. On Monday, Moderna appeared to benefit from the struggles of one of its key vaccine maker rivals. The Food and Drug Administration added a warning to Johnson & Johnson 's COVID-19 vaccine noting that it had been linked in extremely rare cases to an autoimmune condition known as Guillain-Barre syndrome.
NYSE: PFE
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
NYSE: PFE
So why are these vaccine stocks tumbling today? Investors appear to be looking past the current surge in COVID-19 cases and expect a future where fewer vaccine doses are administered.
So what
Investors should always look forward. And the number of COVID-19 vaccine doses sold by Pfizer, BioNTech, and Moderna could very well decline significantly after 2022 (or perhaps 2023).
Now what
Cuba Gooding, Jr.'s character in the movie Jerry Maguire had a famous line that seems applicable for Pfizer, BioNTech, and Moderna: "Show me the money." The main thing for investors to watch with all three companies is the money -- in particular, supply deals for COVID-19 vaccines for beyond 2022.
Premium Investing Services
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.
Which is better, Moderna or Pfizer?
While Pfizer has the more illustrious history as compared to Moderna, it's Moderna who has the better long-term uptrend. This was also one of the key reasons that we decided to invest in Moderna earlier on and not Pfizer as we really didn't like what we saw on Pfizer's charts. But, at the same time, we like what we saw on Moderna's charts when we invested last year. We also used the recent momentum spike on MRNA stock as a golden opportunity to take profit on half of our position to protect our gains which more than covered our capital, leaving the rest of the positions for speculation.
What is the EBITDA multiple for Moderna?
Therefore, we computed our fair values and implied EBITDA multiples based on FY23 numbers. Even though Moderna is expected to trade at a 14.8x EBITDA multiple in FY23, we adjusted our implied multiple downwards to 10x to adjust for significant uncertainty in its pipeline, as well as to return some sanity to the stock. On the other hand, we were comfortable assigning Pfizer an implied EBITDA multiple of 4.5x, largely in line with its FY23 EBITDA multiple of 4.3x.
What is the midpoint value of Moderna?
Based on our above assumptions, we derived a midpoint fair value of $292 for Moderna (21% downside from $372 closing price) and a midpoint fair value of $47 for Pfizer (1.6% upside from $46.3 closing price).
How long is the seeking alpha free trial?
Subscribe right now because you get to try out the service for 14 days FREE. Seeking Alpha's unconditional guarantee also protects your free trial.
Is Moderna going to decline?
In particular, Moderna is expected to suffer a decline of almost 50% of its FY21 revenue estimate in 2023, while Pfizer's highly diversified product portfolio is expected to help soften the impact as 2023's revenue is expected to decline by about 29% against 2021 estimates, which by comparison is much better than Moderna's estimates.
Will Moderna be 3B?
Moderna is expected to almost double or triple its supply to 2B or 3B dos es in 2022, depending on whether the company uses 100 micrograms or 50 micrograms in its product moving forward. Pfizer-BioNTech is also expected to increase its capacity to 3B doses in 2022, while we also need to take into account Novavax's impending entry (still pending EUA approval) into the COVID-19 vaccines production game, as well as the Chinese vaccine makers who already have an annual capacity of 5B doses.
Is Moderna making progress?
On this aspect, we highlighted in our recent article on Moderna that the company is making good progress in the other five therapeutic areas that they are focusing on that includes an RSV vaccine, quadrivalent seasonal flu vaccine, as well as a CMV vaccine, and we encourage investors to pay close attention to their developments.
How much does Moderna cost?
Moderna’s vaccine will also be more expensive than rivals, as it is likely to cost between $25 and $37 per dose, depending on the volume of the order, compared to about $19 per dose for the Pzifer vaccine. See our indicative theme of Covid-19 Vaccine stocks – which includes U.S.-listed pharma and biotech companies.
How does Moderna work?
Once the genetic code of a virus is available, Moderna essentially adapts messenger RNA to trigger the immune system to produce protective antibodies without using the actual part of the virus , unlike traditional vaccines. For perspective, the Covid-19 vaccine was apparently designed within a few days. [4] .
How cold can Moderna be stored?
Pfizer’s vaccine is about 95% effective based on phase 3 data, but it needs to be stored at extremely cold temperatures of minus 94 degrees Fahrenheit, calling for specialized freezers. AstraZeneca’s vaccine, on the other hand, faces concerns regarding some gaps in its trial data, which could undermine its reported results. [6] Moderna’s vaccine offers an efficacy that’s similar to Pfizer’s and can apparently be stored at refrigerator-like temperatures for 30 days.
How many doses of Moderna are there?
FDA last week, with vaccinations likely to begin as soon as Monday. Initial shipments are likely to stand at about 6 million doses, with total shipments by the end of the month likely to rise to about 20 million. This is larger than the Pfizer (NYSE: PFE) vaccine, which has delivered 2.9 million doses to date and has more stringent shipping and storage requirements. While the financial impact of the vaccine is likely to be limited for Moderna this quarter – with consensus pointing to about $250 million in Revenue, the number should scale up considerably to over $1.3 billion in Q1 2021, with Moderna likely to post a quarterly profit.
How much is Moderna revenue in 2021?
While the financial impact of the vaccine is likely to be limited for Moderna this quarter – with consensus pointing to about $250 million in Revenue, the number should scale up considerably to over $1.3 billion in Q1 2021, with Moderna likely to post a quarterly profit.
How is mRNA produced?
Unlike traditional vaccines which use a virus protein that needs to be grown over the course of weeks, mRNA molecules – which instruct the body to produce virus proteins by itself – are less complex and are produced via a chemical process (rather than a biological process) making mass production much quicker.
Where is Moderna manufactured?
Moderna is working with multiple partners to produce its vaccine. Switzerland-based Lonza, one of the world’s largest pharmaceutical services companies, will produce the key mRNA active ingredient for the vaccine in New Hampshire and Switzerland.
What happened
Shares of several top COVID-19 vaccine makers were sinking on Tuesday. Pfizer (NYSE: PFE) stock was down 2.7% as of 11:09 a.m. EDT. Shares of Pfizer's partner, BioNTech (NASDAQ: BNTX), were falling 7%. Moderna (NASDAQ: MRNA) stock was tumbling 5.4%. Novavax (NASDAQ: NVAX) was the biggest loser with its shares declining 8.1%.
So what
It's really not all that surprising that these stocks would give up much of the gains from Monday. FDA approval for the Pfizer-BioNTech vaccine was fully expected.
Now what
Pfizer, BioNTech, and Moderna hope to win EUAs for their vaccines in younger children within the next few months. The companies also will pursue full FDA approvals in these age groups. Novavax plans to file for EUA of its COVID-19 vaccine in the fourth quarter, with submissions in the U.K. and Europe coming even sooner.
The Motley Fool
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.
What happened
This week has started off badly for several COVID-19 vaccine stocks. Shares of Pfizer (NYSE: PFE) were sliding 3.9% as of 10:57 a.m. ET on Monday. Pfizer's partner, BioNTech (NASDAQ: BNTX), was getting hit even harder with its stock falling 8.3%. Shares of rival Moderna (NASDAQ: MRNA) were sinking 12.24%.
So what
Investors were obviously disappointed by the delay in potential authorization for the Pfizer-BioNTech vaccine in younger kids. It's not surprising that shares of Pfizer and BioNTech would trade a little lower.
Now what
Pfizer and BioNTech expect to have results from a third dose of their vaccine in younger children available in early April. The companies should then be in a position to move forward with their rolling EUA submission to the FDA.
The Motley Fool
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.
