Reviewing Roche (OTCMKTS:RHHBY) and Sanofi (NASDAQ:SNY)

Roche (OTCMKTS:RHHBY) and Sanofi (NASDAQ:SNY) are both large-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Dividends

Roche pays an annual dividend of $0.87 per share and has a dividend yield of 2.2%. Sanofi pays an annual dividend of $1.60 per share and has a dividend yield of 3.4%. Sanofi pays out 57.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

14.0% of Sanofi shares are held by institutional investors. 1.0% of Sanofi shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Roche and Sanofi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roche	N/A	N/A	N/A
Sanofi	21.47%	16.86%	9.63%

Risk & Volatility

Roche has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Sanofi has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roche	1	3	1	2	2.57
Sanofi	0	2	3	3	3.13

Sanofi has a consensus target price of $62.00, suggesting a potential upside of 32.62%. Given Sanofi’s stronger consensus rating and higher possible upside, analysts clearly believe Sanofi is more favorable than Roche.

Earnings & Valuation

This table compares Roche and Sanofi”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roche	$68.73 billion	3.60	$9.40 billion	N/A	N/A
Sanofi	$44.46 billion	2.58	$6.02 billion	$2.80	16.70

Roche has higher revenue and earnings than Sanofi.

Summary

Sanofi beats Roche on 11 of the 15 factors compared between the two stocks.

About Roche

Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Europe, North America, Latin America, Asia, Africa, Australia, and Oceania. The company offers pharmaceutical products in the therapeutic areas of anemia, blood and solid tumors, dermatology, hemophilia, inflammatory and autoimmune, neurological disorders, ophthalmology, respiratory disorders, and transplantation. It is also developing products for various therapeutic areas. In addition, it offers in vitro tests for the diagnosis of various diseases, such as cancer, diabetes, Covid-19, hepatitis, human papillomavirus, and other diseases; diagnostic instruments; and digital health solutions. Roche Holding AG was founded in 1896 and is based in Basel, Switzerland.

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.