Since Covid-19 was found in China there has been a race to find the vaccine. In less than a year two companies Modnera, and Pfizer who partnered when BionTech are on the cusp of distributing their vaccine. This has breathed hope back into people and the economy knowing that the end of the pandemic may be soon. This is incredible considering that it usually takes ten years to create and distribute a vaccine. With both companies almost ready to distribute the question for investors is which one is better to invest in? I believe that Biontech is a stronger stock to invest in short term, but Modenera is a stronger investment long term.
What is unique about both vaccines is that both will be the first mRNA vaccines to be used. mRNA vaccines do not give you Covid-19. mRNA vaccines give you harmless proteins that cause Covid-19. This then gives cell instructions on how to make the antibodies to fight off Covid-19. The Pfizer and Biotech’s vaccine is 95 percent effective while Moderna’s is 94 percent effective. Both vaccines have been recorded as having minimal side effects.
Out of Biontech and Pfizer stock Biontech is the more profitable of the two. Biotechs market cap value is 25 billion while Pfizer is 200 billion. This means that Biotechs stock is much more sensitive to news about their vaccine and will be more profitable as their vaccine continues to do well. Biontech is a more profitable short-term stock because they have already submitted their application for approval of their vaccine to the FDA. Meaning they will most likely have the first vaccine being distributed. Their stock will get a huge bump if it is approved, especially because it will be the first to be approved. The UK is also expected to approve the vaccine thanksgiving week. Over the next few weeks Biontech should have strong gains.
Moderna stock is better long term because Biontech will have a lot of distribution problems while Moderna will not. Performance wise these vaccines are about the same. However, Moderna’s vaccine can be stored in a standard refrigerator. Biotechs vaccines must be stored in temperatures of -94 degrees fahrenheit. This means that it will be hard for Biontech to distribute their vaccine because not every doctor’s office has refrigerators that can keep the vaccine this cold. While Biontech will have a few weeks, head start by getting approval from the FDA. Modernas Vaccine still might be favored long term because of its ease of distribution. The vaccine will also be easier to transport to places that do not have a lot of infrastructure available
Both stocks have shown promising results with Biontech 52 week low being twenty dollars and currently being priced at hundred and five dollars. Modernas 52 week low being seventeen dollars, and currently has a price of ninety-nine dollars. The biggest challenge that will face these companies now is getting people to take these vaccines.