AstraZeneca vs Moderna Which Should You Buy?

AstraZeneca and Moderna are two prominent pharmaceutical companies at the forefront of vaccine development amid the COVID-19 pandemic. Both companies have seen fluctuations in their stock prices due to various factors such as vaccine efficacy, distribution agreements, and global demand. AstraZeneca, a British-Swedish company, has faced setbacks with its vaccine rollout, while Moderna, an American company, has gained traction with its mRNA technology. Investors closely track the performance of these stocks to stay informed on the latest developments in the race for a COVID-19 vaccine.

AstraZeneca or Moderna?

When comparing AstraZeneca and Moderna, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AstraZeneca and Moderna.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AstraZeneca has a dividend yield of 2.19%, while Moderna has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AstraZeneca reports a 5-year dividend growth of 0.42% year and a payout ratio of 71.25%. On the other hand, Moderna reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AstraZeneca P/E ratio at 32.17 and Moderna's P/E ratio at -7.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AstraZeneca P/B ratio is 5.13 while Moderna's P/B ratio is 1.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AstraZeneca has seen a 5-year revenue growth of 0.70%, while Moderna's is 10.87%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AstraZeneca's ROE at 16.57% and Moderna's ROE at -17.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $67.20 for AstraZeneca and $41.06 for Moderna. Over the past year, AstraZeneca's prices ranged from $60.47 to $87.68, with a yearly change of 45.00%. Moderna's prices fluctuated between $35.80 and $170.47, with a yearly change of 376.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.