- PREMIUM
- LIVE QUOTES
- INSTITUTIONS
Index Options
State Street
CME Group
Nasdaq
Cboe
TradingView
Wall Street JournalIndustry Comparison: Evaluating Pfizer Against Competitors In Pharmaceuticals Industry
In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Pfizer (NYSE:PFE) against its key competitors in the Pharmaceuticals industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
Pfizer Background
Pfizer is one of the world's largest pharmaceutical firms, with annual sales of roughly $60 billion. While it historically sold many types of healthcare products and chemicals, now prescription drugs and vaccines account for the majority of sales. Top sellers include pneumococcal vaccine Prevnar 13 and cardiology drugs Vyndaqel and Eliquis. Pfizer sells these products globally, with international sales representing 40% of total sales. Within international sales, emerging markets are a major contributor.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Pfizer Inc | 14.56 | 1.53 | 2.28 | 3.9% | $5.65 | $12.48 | -5.91% |
| Eli Lilly and Co | 51.04 | 39.19 | 15.79 | 26.54% | $7.88 | $14.59 | 53.87% |
| Johnson & Johnson | 20.32 | 6.39 | 5.54 | 6.53% | $9.52 | $16.69 | 6.77% |
| AstraZeneca PLC | 29.85 | 6.07 | 4.83 | 5.59% | $5.23 | $12.39 | 11.99% |
| Novartis AG | 18.47 | 5.84 | 4.73 | 9.1% | $5.84 | $10.82 | 9.0% |
| Merck & Co Inc | 13.12 | 4.75 | 3.89 | 11.47% | $8.23 | $13.42 | 3.72% |
| Novo Nordisk AS | 13.01 | 7.94 | 4.28 | 11.84% | $31.44 | $57.07 | 5.14% |
| Sanofi SA | 15.63 | 1.36 | 2.19 | 3.91% | $4.2 | $9.76 | 1.49% |
| Bristol-Myers Squibb Co | 18.03 | 5.88 | 2.27 | 12.23% | $4.61 | $8.79 | 2.77% |
| GSK PLC | 13.69 | 4.55 | 2.34 | 13.01% | $3.36 | $6.29 | 6.68% |
| Zoetis Inc | 20.58 | 9.98 | 5.81 | 13.9% | $1.07 | $1.72 | 0.5% |
| Takeda Pharmaceutical Co Ltd | 218.12 | 0.99 | 1.63 | -0.17% | $316.47 | $732.74 | -5.38% |
| Teva Pharmaceutical Industries Ltd | 49.28 | 4.76 | 2.07 | 6.15% | $1.1 | $2.3 | 3.42% |
| Dr Reddy's Laboratories Ltd | 17.99 | 2.94 | 3.08 | 4.06% | $24.31 | $48.14 | 9.84% |
| Elanco Animal Health Inc | 315.43 | 1.63 | 2.41 | -0.5% | $0.18 | $0.61 | 10.39% |
| Corcept Therapeutics Inc | 94.57 | 13.70 | 13.30 | 3.05% | $0.01 | $0.2 | 13.75% |
| Average | 60.61 | 7.73 | 4.94 | 8.45% | $28.23 | $62.37 | 8.93% |
By conducting an in-depth analysis of Pfizer, we can identify the following trends:
The stock's Price to Earnings ratio of 14.56 is lower than the industry average by 0.24x, suggesting potential value in the eyes of market participants.
Considering a Price to Book ratio of 1.53, which is well below the industry average by 0.2x, the stock may be undervalued based on its book value compared to its peers.
With a relatively low Price to Sales ratio of 2.28, which is 0.46x the industry average, the stock might be considered undervalued based on sales performance.
The company has a lower Return on Equity (ROE) of 3.9%, which is 4.55% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
The company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $5.65 Billion, which is 0.2x below the industry average. This potentially indicates lower profitability or financial challenges.
The company has lower gross profit of $12.48 Billion, which indicates 0.2x below the industry average. This potentially indicates lower revenue after accounting for production costs.
With a revenue growth of -5.91%, which is much lower than the industry average of 8.93%, the company is experiencing a notable slowdown in sales expansion.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By analyzing Pfizer in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:
Pfizer demonstrates a stronger financial position compared to its top 4 peers in the sector.
With a lower debt-to-equity ratio of 0.66, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
Key Takeaways
For Pfizer, the PE, PB, and PS ratios are all low compared to its peers in the Pharmaceuticals industry, indicating potential undervaluation. However, Pfizer's low ROE suggests lower profitability compared to industry peers. Additionally, the low EBITDA, gross profit, and revenue growth further highlight potential challenges in generating profits and revenue growth compared to its competitors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.