Scilex (NASDAQ:SCLX – Get Free Report) and Sanofi (NASDAQ:SNY – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Scilex and Sanofi, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Scilex | 1 | 0 | 0 | 0 | 1.00 |
| Sanofi | 1 | 12 | 7 | 1 | 2.38 |
Sanofi has a consensus target price of $49.50, indicating a potential upside of 26.53%. Given Sanofi’s stronger consensus rating and higher possible upside, analysts plainly believe Sanofi is more favorable than Scilex.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Scilex | $30.25 million | 0.81 | -$358.73 million | ($49.70) | -0.06 |
| Sanofi | $49.35 billion | 1.92 | $8.84 billion | $1.91 | 20.48 |
Sanofi has higher revenue and earnings than Scilex. Scilex is trading at a lower price-to-earnings ratio than Sanofi, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Scilex and Sanofi’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Scilex | -1,414.57% | N/A | -147.00% |
| Sanofi | 8.66% | 14.19% | 7.95% |
Risk and Volatility
Scilex has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Sanofi has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.
Institutional and Insider Ownership
69.7% of Scilex shares are owned by institutional investors. Comparatively, 14.0% of Sanofi shares are owned by institutional investors. 4.5% of Scilex shares are owned by insiders. Comparatively, 1.0% of Sanofi shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Sanofi beats Scilex on 12 of the 15 factors compared between the two stocks.
About Scilex
Scilex Holding Company focuses on acquiring, developing, and commercializing non-opioid pain management products for the treatment of acute and chronic pain. Its commercial products include ZTlido (lidocaine topical system) 1.8% (ZTlido), a prescription lidocaine topical product for the relief of neuropathic pain associated with postherpetic neuralgia (PHN), which is a form of post-shingles nerve pain; ELYXYB, a ready-to-use oral solution for the acute treatment of migraine with or without aura in adults; and GLOPERBA, a liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. The company is also developing three product candidates, including SP-102 (10 mg dexamethasone sodium phosphate viscous gel) (SEMDEXA), a novel viscous gel formulation of a used corticosteroid for epidural injections, which has completed a Phase 3 study to treat lumbosacral radicular pain or sciatica; SP-103 (lidocaine topical system) 5.4% (SP-103), a formulation of ZTlido for the treatment of chronic neck pain and low back pain (LBP) that has completed a Phase 2 trial; and SP-104 (4.5 mg low-dose naltrexone hydrochloride delayed-release capsules) (SP-104), a novel low-dose delayed-release naltrexone hydrochloride, which has completed Phase 1 trials for the treatment of fibromyalgia. The company is headquartered in Palo Alto, California.
About Sanofi
Sanofi, a healthcare company, engages in the research, development, manufacture, and marketing of therapeutic solutions in the United States, Europe, Canada, and internationally. It operates through Pharmaceuticals, Vaccines, and Consumer Healthcare segments. The company provides specialty care, such as DUPIXENT, neurology and immunology, rare diseases, oncology, and rare blood disorders; medicines for diabetes and cardiovascular diseases; and established prescription products. In addition, it offers poliomyelitis, pertussis, and hib pediatric vaccines; influenza, booster, meningitis, and travel and endemic vaccines, which includes hepatitis A, typhoid, cholera, yellow fever, and rabies vaccines. The company also provides cough, cold, and flu, allergy, and pain care products, as well as physical, mental, and digestive wellness products; and offers products for itching, hydration, aging, cracking, overnight, and specialty skincare needs like eczema. Further, it has a collaboration and license agreement with Exscientia to develop up to 15 novel small-molecule for oncology and immunology; ABL Bio, Inc. to develop ABL301, a treatment for alpha-synucleinopathies; Blackstone Life Sciences to develop pivotal studies and clinical development program; and Seagen Inc. to design, develop, and commercialize antibody-drug conjugates for cancer. Additionally, the company has a collaboration agreement with IGM Biosciences, Inc. to develop, manufacture, and commercialize IgM antibody; Skyhawk Therapeutics, Inc to discover and develop novel small molecules; and Adagene Inc., for the discovery and development of antibody-based therapies. It also has collaborations with Scribe Therapeutics Inc. to develop genome editing technologies; and co-promotion service agreement with Provention Bio, Inc. for the commercialization of teplizumab. The company was formerly known as Sanofi-Aventis and changed its name to Sanofi in May 2011. Sanofi was incorporated in 1994 and is headquartered in Paris, France.
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