Syngene International vs Biocon Which Is a Smarter Choice?

Syngene International and Biocon are two prominent players in the biopharmaceutical industry in India. Syngene International, a subsidiary of Biocon, offers integrated drug discovery and development services to pharmaceutical companies worldwide. On the other hand, Biocon is a leading biotechnology company with a diverse portfolio of products ranging from APIs to biosimilars. Both companies have shown consistent growth in recent years, attracting investors looking to capitalize on the rapidly expanding healthcare sector in India.

Syngene International or Biocon?

When comparing Syngene International and Biocon, 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 Syngene International and Biocon.

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. Syngene International has a dividend yield of 0.14%, while Biocon has a dividend yield of 0.13%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Syngene International reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Biocon 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 Syngene International P/E ratio at 76.70 and Biocon's P/E ratio at 32.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Syngene International P/B ratio is 8.41 while Biocon's P/B ratio is 2.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Syngene International has seen a 5-year revenue growth of 1.00%, while Biocon's is 1.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Syngene International's ROE at 11.38% and Biocon's ROE at 6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹917.45 for Syngene International and ₹372.75 for Biocon. Over the past year, Syngene International's prices ranged from ₹607.65 to ₹960.60, with a yearly change of 58.08%. Biocon's prices fluctuated between ₹236.90 and ₹395.80, with a yearly change of 67.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.