Sanofi (NASDAQ:SNY – Get Free Report) and Recordati Industria Chimica E Farmaceutica (OTCMKTS:RCDTF – Get Free Report) are both large-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Risk & Volatility
Sanofi has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Recordati Industria Chimica E Farmaceutica has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.
Institutional and Insider Ownership
14.0% of Sanofi shares are held by institutional investors. 1.0% of Sanofi shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sanofi | 1 | 10 | 3 | 2 | 2.38 |
| Recordati Industria Chimica E Farmaceutica | 0 | 1 | 0 | 1 | 3.00 |
Sanofi currently has a consensus target price of $49.50, indicating a potential upside of 15.74%. Given Sanofi’s higher possible upside, research analysts clearly believe Sanofi is more favorable than Recordati Industria Chimica E Farmaceutica.
Valuation & Earnings
This table compares Sanofi and Recordati Industria Chimica E Farmaceutica”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sanofi | $48.92 billion | 2.12 | $8.84 billion | $1.91 | 22.39 |
| Recordati Industria Chimica E Farmaceutica | $2.96 billion | 4.04 | $501.92 million | $2.80 | 20.71 |
Sanofi has higher revenue and earnings than Recordati Industria Chimica E Farmaceutica. Recordati Industria Chimica E Farmaceutica is trading at a lower price-to-earnings ratio than Sanofi, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sanofi and Recordati Industria Chimica E Farmaceutica’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sanofi | 8.66% | 14.19% | 7.95% |
| Recordati Industria Chimica E Farmaceutica | 18.38% | 33.73% | 12.76% |
Summary
Sanofi beats Recordati Industria Chimica E Farmaceutica on 9 of the 15 factors compared between the two stocks.
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.
About Recordati Industria Chimica E Farmaceutica
Recordati Industria Chimica e Farmaceutica S.p.A., together with its subsidiaries, engages in the research, development, manufacture, and marketing of pharmaceuticals worldwide. The company operates through Specialty and Primary Care and Rare Diseases segments. Its product pipeline includes REC 0559 which is in Phase II for the treatment of Neurotrophic Keratitis; REC 0545 for acute decompensation in maple syrup urine diseases; ISTURISA for endogenous Cushing's syndrome; and CYSTADROPS, an corneal cystine deposits in patients with cystinosis. The company also develops CARBAGLU for hyperammonemia due to NAGS deficiency; QARZIBA, an apeiron for the treatment of high-risk neuroblastoma patients with a partial response at the chemotherapeutical through myeloablative therapy and stem cell transplantation, and relapsed or refractory neuroblastoma. In addition, it offers SYLVANT for the treatment of idiopathic multicentric Castleman diseases; REAGILA for Schizophrenia; and ELIGARD for hormone-dependent prostate cancer, as well as CAPHOSOL, a medical device for treatment of oral mucositis due to chemo and radiation therapy. The company was founded in 1926 and is headquartered in Milan, Italy. Recordati Industria Chimica e Farmaceutica S.p.A. operates as a subsidiary of Rossini S.à R.L.
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