Financial Comparison: Immunovant (NASDAQ:IMVT) vs. Vaxcyte (NASDAQ:PCVX)

Vaxcyte (NASDAQ:PCVX) and Immunovant (NASDAQ:IMVT) are both mid-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Vaxcyte and Immunovant, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vaxcyte	1	1	7	1	2.80
Immunovant	1	3	6	1	2.64

Vaxcyte presently has a consensus price target of $93.83, suggesting a potential upside of 60.37%. Immunovant has a consensus price target of $31.11, suggesting a potential upside of 16.96%. Given Vaxcyte’s stronger consensus rating and higher probable upside, research analysts clearly believe Vaxcyte is more favorable than Immunovant.

Profitability

This table compares Vaxcyte and Immunovant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vaxcyte	N/A	-21.08%	-19.67%
Immunovant	N/A	-63.17%	-58.01%

Risk & Volatility

Vaxcyte has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Immunovant has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Valuation and Earnings

This table compares Vaxcyte and Immunovant”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vaxcyte	N/A	N/A	-$463.93 million	($4.84)	-12.09
Immunovant	N/A	N/A	-$413.84 million	($2.69)	-9.89

Vaxcyte is trading at a lower price-to-earnings ratio than Immunovant, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

96.8% of Vaxcyte shares are held by institutional investors. Comparatively, 47.1% of Immunovant shares are held by institutional investors. 3.1% of Vaxcyte shares are held by company insiders. Comparatively, 1.8% of Immunovant shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Vaxcyte beats Immunovant on 8 of the 11 factors compared between the two stocks.

About Vaxcyte

Vaxcyte, Inc., a clinical-stage biotechnology vaccine company, develops novel protein vaccines to prevent or treat bacterial infectious diseases. Its lead vaccine candidate is VAX-24, a 24-valent investigational pneumococcal conjugate vaccine for the prevention of invasive pneumococcal disease. The company also develops VAX-31 to protect against emerging strains and to help address antibiotic resistance; VAX-A1, a novel conjugate vaccine candidate to prevent disease caused by Group A Streptococcus; VAX-PG, a novel protein vaccine candidate targeting keystone pathogen responsible for periodontitis; and VAX-GI to prevent Shigella, a bacterial illness. The company was formerly known as SutroVax, Inc. and changed its name to Vaxcyte, Inc. in May 2020. Vaxcyte, Inc. was incorporated in 2013 and is headquartered in San Carlos, California.

About Immunovant

Immunovant, Inc., a clinical-stage biopharmaceutical company, develops monoclonal antibodies for the treatment of autoimmune diseases. It develops batoclimab, a novel fully human monoclonal antibody that target the neonatal fragment crystallizable receptor for the treatment of myasthenia gravis, thyroid eye disease, chronic inflammatory demyelinating polyneuropathy, and Graves diseases, as well as warm autoimmune hemolytic anemia. The company is headquartered in New York, New York. Immunovant, Inc. operates as a subsidiary of Roivant Sciences Ltd.