<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>The smaller, more volatile of these two companies has higher potential for significant gains.</li><li>However, that also comes with a healthy dose of risk.</li><li>Choosing between these two stocks may come down to each investor's goals and risk tolerance.</li><li>10 stocks we like better than Pfizer ›</li></ul>Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) were both leaders in the coronavirus vaccine market. However, as sales of these products have declined significantly in recent years -- due to the pandemic receding and more stringent regulatory oversight regarding who is eligible for the vaccine -- both companies have delivered unimpressive financial results. Pfizer and Moderna are diligently working to launch new products and turn things around. And if their strategies pan out, they could produce strong returns from here on out. But which one has more upside? <img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDY3MS9yZXNlYXJjaC1zY2llbnRpc3RzLWRydWdzLXBoYXJtYS1iaW90ZWNoLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDY3MS9yZXNlYXJjaC1zY2llbnRpc3RzLWRydWdzLXBoYXJtYS1iaW90ZWNoLmpwZyZ3PTcwMA"/>Image source: Getty Images.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue » <h2>Size matters </h2>Pfizer is by far the larger and better-established drugmaker. With a market cap of $156 billion, the pharmaceutical leader boasts a deep product portfolio across several therapeutic areas. Even with a slowdown in covid-related sales, Pfizer generates over $60 billion in annual revenue. It also has a deep pipeline that should make meaningful progress this year and the next, even as the company encounters patent cliffs in the coming years, including that of its anticoagulant, Eliquis. Even though pipeline and regulatory progress could jolt the stock, larger drugmakers are less likely to experience significant price swings amid ongoing clinical developments. That's why Moderna may have more upside. It is a much smaller biotech -- its market cap is about $22 billion -- whose ongoing work in developing mRNA-based vaccines may help it launch innovative products. Case in point: Moderna is up 69% this year alone, partly due to data from a five-year follow-up of a mid-stage study of its investigational cancer vaccine, mRNA-4157. The company found that this product, in combination with Merck's Keytruda, continues to reduce the risk of recurrence or death in patients with advanced melanoma compared with Keytruda alone.Although this result is highly encouraging -- and mRNA-4157 is ongoing several phase 3 studies and could be an important launch -- Moderna's 69% gain this year is almost unheard of for a drugmaker the size of Pfizer in a mere three months. Moderna has more promising pipeline candidates, including an investigational influenza vaccine that is being considered for approval by authorities in the U.S.Several others are in phase 2 or phase 3 studies and could be important breakthroughs. For instance, Moderna is developing a potential HIV vaccine. Moderna's smaller size and attempts to revolutionize the vaccine market grant it more upside than the larger, more traditional drugmaker, Pfizer.<h2>But which is the better buy?</h2>Moderna may have more upside, but it also has more downside potential. Think of what will happen if the U.S. Food and Drug Administration declines to approve its flu vaccine, or if its mRNA-4157 fails to prove effective in phase 3 studies -- or both. The company's shares will drop off a cliff, erasing much of the gains it has accumulated this year. By contrast, Pfizer can handle clinical or regulatory setbacks better. Its larger pipeline and significant annual sales grant it wiggle room that Moderna doesn't have, at least not as much. Pfizer is more financially flexible and can manage setbacks by investing more in R&amp;D, acquiring a new company, or in many other ways. That's what it did recently: After failing to develop weight management medicines internally, Pfizer made a strategic acquisition and now owns MET-097i, one of the more promising weight loss drugs in development. This financial strength makes Pfizer the less risky of the two. And Pfizer has other qualities as well. For instance, the company pays a regular dividend. Pfizer's poor performance in recent years has pushed its yield to a juicy 6.3%, well above the S&amp;P 500's average of 1.2%.Pfizer has increased its payouts by about 51.3% over the past decade. So, which is the better buy: Pfizer or Moderna? Investors with an appetite for risk and volatility should opt for the latter. Those looking for solid, blue chip dividend stocks, on the other hand, should invest in Pfizer. <h2>Should you buy stock in Pfizer right now?</h2> Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $510,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,949!* Now, it’s worth noting Stock Advisor’s total average return is 927% — a market-crushing outperformance compared to 186% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 19, 2026. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck, Moderna, and Pfizer. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

SBIO

Pfizer and Moderna, both leaders in the COVID-19 vaccine market, face declining sales and unimpressive financial results. Pfizer, with a market cap of $156 billion, offers stability and a strong pipeline, while Moderna, valued at $22 billion, presents higher upside potential due to its innovative mRNA-based products. However, Moderna's smaller size comes with greater risk. Investors seeking growth may prefer Moderna, while those favoring stability and dividends should consider Pfizer, which has a yield of 6.3%.

- Pfizer (NYSE: PFE) is a larger, well-established drugmaker with a market cap of $156 billion but has faced declining sales from pandemic-related products.  
- Moderna (NASDAQ: MRNA), with a market cap of $22 billion, shows higher potential for significant gains due to its innovative mRNA vaccine pipeline, despite being riskier.  
- Investors seeking stable returns may prefer Pfizer, which offers dividends and financial flexibility, while those willing to accept volatility might opt for the more nimble Moderna.

Pfizer vs Moderna: Which Pharma Stock Has More Upside?