Moderna vs AstraZeneca Stock: Which Is Best?

Moderna vs AstraZeneca Stock: It’s no surprise that, in a global pandemic, biotech stocks are hogging center stage.

Markets rally big time when the biotech sector shows great promise or positive breakthroughs in new treatments for a variety of ills. Today’s race for a cure for the novel coronavirus has investors scrambling to find the best coronavirus stocks to invest in.

For those companies that can find a cure for a virus that all but cleaned house when it comes to the global economy – remember the S&P 500’s drastic 30% drop? – investors could be crying happy tears all the way to the bank.

But that’s not all that’s at stake in biotech. There are several other companies making breakthroughs every day in regards to Alzheimer’s and cancer treatments.

But who are the central actors when it comes to the race to a COVID vaccine?

Pharma Giants: AZN Vs MRNA

Moderna grabbed the spotlight as its potential vaccine was the first to head into the human trials phase in March 2020.

Then, just a month later, AstraZeneca hip-checked Moderna with the announcement of its collaboration with University of Oxford. Oxford researchers were already working on a vaccine and were able to move to human trials thanks to the partnership.

This has a lot of analysts scratching their heads – will AstraZeneca see the same triple-digit gains that other biotechs have seen, such as Moderna’s nearly 280% jump?

With AstraZeneca’s trials temporarily halted and Moderna currently enrolling late-stage participants, only time will tell – so let’s look at these two stock giants a bit closer.

Which stock is the better buy? Which one should you maybe consider selling? It all depends on the type of investor you are.

AstraZeneca Oncological Revenues Up 26%

Some drugmakers have just one area of expertise. AstraZeneca, however, has seen success from multiple areas of research and development.

For instance, the company’s oncology division continues to rise. AstraZeneca’s cancer treatment, Tagrisso, generates nearly 16% of the overall revenue for the company. Other oncological drugs, such as Imfinzi, Lynparza, and Calquence are gaining strength, as well.

AstraZeneca’s oncological division alone has seen a growth of 26% from Q2 2019 to Q2 2020. The rest of the company’s focus is on the development of cardiovascular, renal, metabolic, respiratory, and immunology research and development.

It’s predicted that AstraZeneca will grow annually at an average of 19% through 2025. Its current developments will fuel a lot of this growth – but it has a pipeline of 166 programs currently in the works that could also ignite.

Generating the most interest currently is the company’s partnership with University of Oxford. The two organizations are working together on a COVID vaccine candidate.

So, with all these pluses, AstraZeneca seems an obvious buy. Add to these positives a dividend yield of over 2.5% and you have a recipe for stardom.

Moderna Granted Almost $1 Billion In Funding

Moderna also launched a Phase 3 trial for a COVID vaccine in July 2020. The company hopes to find 30,000 high-risk individuals to enroll in the trials.

Any positive information stemming from their trial data should push shares ever higher throughout the rest of 2020 and for years to come. If Moderna commercializes, that would spark further momentum.

And the federal government tapped Moderna and others as companies to support as the nation races towards a COVID cure. Moderna was granted $483 million in initial funding, and a further $472 million to expand Phase 3 vaccine testing.

Government backing doesn’t always mean a company will succeed in its endeavors – but it does mean that Moderna has more than enough funding for the development phase of its proposed vaccine.

AstraZeneca Trial Halted After Adverse Reaction

There isn’t a stock on the market that doesn’t come with potential risks – AstraZeneca’s no exception. Remember all those projects in the company’s pipeline?

While that’s great for possible huge returns – what if a candidate flops in the clinical testing phase? What if the company’s current drugs see an increase in competition?

And – and this is the kicker – the company plans to supply Europe with the COVID vaccine upon release for not a penny of profit.

Finally, on Wednesday, September 9, 2020, the company stopped its trial for the vaccine after a report of a participant’s adverse reaction. This caused the company to plummet 2.5% before the market opened that morning.

Moderna Insiders Selling?

A prime ingredient for disaster is always too much excitement. The excitement stemming from Moderna’s COVID vaccine candidate has injected fuel behind the company’s share prices sending them so high that any wobble right now could be as dangerous as a pin-prick to a balloon.

Even if Moderna’s vaccine crosses the finish line ahead of its competitors, what if competitors’ vaccines are superior?

These are considerations that could cause some investors to get their profits while the getting is good.

There is also serious concern that Moderna insiders have been selling stock which may be an ominous sign for its share price going forward. The concern among investors that it may be a sign that either trials won’t be as promising as expected or the company valuation has got ahead of itself.

Moderna Vs AstraZeneca Stock: The Bottom Line

If you’re aggressive and look for growth, Moderna is the attractive stock. The company has seen a meteoric rise in 2020 – any future success could prove astronomical.

Are you more conservative in your investing? You might like AstraZeneca. Big potential for growth coupled with solid dividend payments is highly attractive. And with AstraZeneca’s huge stockpile of current pipeline projects, a failed COVID vaccine wouldn’t hurt AstraZeneca as much as it would Moderna.

AstraZeneca shows promising opportunities. These opportunities outweigh the company’s risks. And the company could still see greater profit should its vaccine be the victor.

If you’re looking for low-risk, growth potential, and attractive dividends, AstraZeneca could be a win-win-win.

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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.