Novavax vs AstraZeneca Which Is a Better Investment?

Novavax and AstraZeneca are two pharmaceutical companies at the forefront of developing COVID-19 vaccines. Both companies have seen fluctuations in their stock prices as they navigate the uncertainties of the pandemic. Novavax's stock has surged as it progresses through clinical trials, while AstraZeneca has faced setbacks in their vaccine development process. Investors are closely watching these companies as they race to provide a solution to the global health crisis.

Novavax or AstraZeneca?

When comparing Novavax and AstraZeneca, 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 Novavax and AstraZeneca.

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. Novavax has a dividend yield of -%, while AstraZeneca has a dividend yield of 2.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Novavax reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, AstraZeneca reports a 5-year dividend growth of 0.42% year and a payout ratio of 71.25%.

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 Novavax P/E ratio at -5.02 and AstraZeneca's P/E ratio at 32.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Novavax P/B ratio is -2.72 while AstraZeneca's P/B ratio is 5.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Novavax has seen a 5-year revenue growth of 4.26%, while AstraZeneca's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Novavax's ROE at 44.82% and AstraZeneca's ROE at 16.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.40 for Novavax and $67.81 for AstraZeneca. Over the past year, Novavax's prices ranged from $3.53 to $23.86, with a yearly change of 575.92%. AstraZeneca's prices fluctuated between $60.47 and $87.68, with a yearly change of 45.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.