Moderna Inc. (NASDAQ:MRNA) and Pfizer Inc. (NYSE:PFE) has been highly popular stocks since the outbreak of COVID-19. Their development of vaccines against the virus results in significant gains for the investors.
Still, investors believe they can draw more returns from the two companies. In this article, we ask which of the two stocks is the better buy.
PFE is trading at $52.10 with a bullish momentum building up. A baseline analysis for the stock indicates that it has established support at $44. Since 2019, the stock has returned approximately 27.64% to investors.
Comparatively, MRNA is trading at $166 with a baseline of $240. With the current price below baseline, the security is expected to edge upwards. Since 2019, MRNA has returned a total of 805.48%% in price gains.
Moderna returned 800% compared to Pfizer’s 27.64%
Source – TradingView
The analysis reveals two important facts about the two stocks. First, PFE is trading above the baseline. Hence it is likely to pull back from $52 to $44 before gaining traction.
Second, MRNA at $166 is trading below the baseline and is likely to reestablish the valuation of $240. Assuming that the price movements behave as projected herein, PFE is indeed at sell at the price of $52 while MRNA is a buy.
Furthermore, the total returns indicate that MRNA investors multiplied their wealth by triple digits while PFE increased investor wealth by only 27.64%.
MRNA is a better buy than PFE at the current market valuation. PFE shares are likely to pull back before gaining. Investors who held the MRNA stock multiplied their wealth by 8x as the PFE investors gained only 27.64%.