Moderna Stock Vs Inovio: The research and development of COVID-19 vaccines throughout the novel coronavirus pandemic has absolutely rocked the pharmaceutical industry, but it’s also had quite the impact on the stock market.
With several pharmaceutical companies competing for the best vaccine on the market and others doing their best to join in the competition with their own unique vaccines, the stock market has been equally as turbulent — just look at the share prices for pharmaceutical companies like Moderna (MRNA) and Inovio (INO), both of which have COVID-19 vaccines of their own and both of which have seen a lot of activity with their stocks.
But which one is best for retail investors and traders hoping to get in on the action?
Moderna Financials: Over 10X Revenue Growth
While many companies and industries took a hard hit when COVID-19 emerged, Moderna did the opposite: From the onset of the novel coronavirus all the way through to today, Moderna’s stock has not stopped rising.
The same goes for its revenue. Over the past twelve months, Moderna has earned over $2.73 billion in total revenue and has walked away with a gross profit of over $2.53 billion. This has everything to do with its COVID-19 vaccine, and it’s clear when looking at December of 2019 and December of 2020: it leapt from a total revenue of $60.2 million to over $803 billion over the course of a single year.
Moderna Valuation Closing In On $100 Billion
It’s difficult to put a price on a pharmaceutical company, especially when the industry they’re working in — the development, testing, and release of COVID-19 vaccines — seems to be changing with each passing day.
As new variants emerge and the effectiveness of various vaccines is put to the test again and again, a company’s share price — and, as a result, its valuation — can tank in the blink of an eye.
Luckily, after an incredibly lucrative year, Moderna has been met with an equally incredible valuation: Its market cap is currently on the brink of reaching $89 billion.
Is Moderna Stock A Buy?
While all seems to be going exceptionally well for Moderna, analysts are torn on whether or not it’s a buy.
While some see the great success of the company and its shares and encourage investors and traders to go for it, others see this abnormal growth reaching new peaks and urge those investors and traders to wait for a dip to buy.
Ultimately, with how much of the world still needs to be vaccinated and how successful Moderna’s vaccine has been thus far, it’s reasonable to argue that Moderna stock is worth buying. But what about Inovio?
Inovio Vaccine Could Be A Game Changer
While Moderna’s stock currently exceeds the $220 mark, Inovio’s stock sits much, much lower — according to the latest numbers, Inovio stock is going for just over $8 a share.
The difference here is like night and day, and it’s clear to see why: Moderna has a vaccine on the market readily available, while Inovio is still working hard to get one out.
But, there’s a catch — If Inovio’s vaccine makes it to the market, then it’s likely to be a game-changer. That’s because Inovio’s COVID-19 vaccine utilizes a revolutionary concept known as electroporation, which shoots the vaccine into the patient’s DNA using a small electric pulse — no needle required.
Therein lies the risk of investing in Inovio, though: The United States seems disinterested in further funding Inovio’s research, meaning that the pharmaceutical company is at something of a standstill until it can find a country willing to help them finance their studies.
If Inovio can’t find a person or a place to help them out financially, then its potential vaccine will more or less be out of luck.
Inovio Valuation Reflects Funding Challenge
When looking at Inovio’s market cap compared to Moderna’s, it shows the huge difference between the two pharmaceuticals: With Inovio at $1.78 billion and Moderna at nearly $89 billion, one company clearly has product-market fit versus the other.
However, who’s to say if or when Inovio could skyrocket upwards? This industry is and always has been ever-changing, even before COVID-19 was a global threat. That’s still the case, and Inovio could become much more valuable at any moment. For now, though, it’s resting comfortably at that $1.78 billion market cap.
Applying just a discounted cash flow analysis, the price of Inovio shares are severely undervalued with as much as 70% upside. But Inovio needs to find a new research funding partner for it to gain traction and prove conceptually that its delivery method is safe and effective, let alone find a market for its potentially revolutionary vaccines.
Is Inovio Stock A Good Buy?
Last summer, Inovio peaked at almost $30 a share. Today, it’s about 1/3 the price. On paper, this screams NO, Inovio stock is not a buy — the numbers are dropping, Inovio continues to face hurdles in its COVID-19 vaccine development, and it’s unclear when or if the important work will be able to continue.
However, that’s not to say that Inovio isn’t worth watching from now on. Things can change at the drop of a hat, and Inovio very well could be worth buying in the future.
Moderna Stock Vs Inovio: Which Is Best?
Due to Moderna’s continued success and Inovio’s seemingly insurmountable hurdles as of late, it’s safe to say that Moderna is best for retail investors and traders right now.
It may be pricier, but it’s also going to be safer — Inovio is much, much cheaper, but it’s also much, much riskier.
Keep an eye out, though: Inovio has made a name for itself because of innovation, and that innovation could end up bringing the pharmaceutical company out of its current circumstances at any time.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.