Reviewing Immunovant (NASDAQ:IMVT) and Vaxcyte (NASDAQ:PCVX)

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

Insider & Institutional Ownership

96.8% of Vaxcyte shares are owned by institutional investors. Comparatively, 47.1% of Immunovant shares are owned by institutional investors. 3.1% of Vaxcyte shares are owned by company insiders. Comparatively, 1.8% of Immunovant shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Vaxcyte and Immunovant”s revenue, earnings per share 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)	-11.02
Immunovant	N/A	N/A	-$413.84 million	($2.69)	-9.77

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Vaxcyte and Immunovant, as reported by MarketBeat.

	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 target price of $93.83, suggesting a potential upside of 75.95%. Immunovant has a consensus target price of $31.11, suggesting a potential upside of 18.38%. Given Vaxcyte’s stronger consensus rating and higher probable upside, research analysts plainly 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, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Immunovant has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

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.