Analyzing NexImmune (NASDAQ:NEXI) and Sanofi (NASDAQ:SNY)

Sanofi (NASDAQ:SNY) and NexImmune (NASDAQ:NEXI) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Profitability

This table compares Sanofi and NexImmune’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sanofi	12.77%	25.61%	14.72%
NexImmune	N/A	-534.32%	-213.72%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sanofi and NexImmune, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanofi	0	2	1	2	3.00
NexImmune	0	0	0	0	0.00

Sanofi presently has a consensus price target of $62.50, suggesting a potential upside of 15.02%. Given Sanofi’s stronger consensus rating and higher probable upside, research analysts clearly believe Sanofi is more favorable than NexImmune.

Valuation and Earnings

This table compares Sanofi and NexImmune”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanofi	$44.29 billion	3.11	$6.02 billion	$2.49	21.82
NexImmune	N/A	N/A	-$32.34 million	($18.54)	N/A

Sanofi has higher revenue and earnings than NexImmune. NexImmune is trading at a lower price-to-earnings ratio than Sanofi, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Sanofi has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, NexImmune has a beta of 2.12, suggesting that its stock price is 112% more volatile than the S&P 500.

Institutional & Insider Ownership

14.0% of Sanofi shares are held by institutional investors. Comparatively, 9.9% of NexImmune shares are held by institutional investors. 1.0% of Sanofi shares are held by insiders. Comparatively, 14.9% of NexImmune shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Sanofi beats NexImmune on 12 of the 14 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 NexImmune

NexImmune, Inc., a clinical-stage biotechnology company, engages in developing therapies with curative potential for patients with cancer and other life-threatening immune-mediated diseases in the United States. It develops approaches to T cell immunotherapies based on its proprietary Artificial Immune Modulation, a nanoparticle technology platform. The company’s product candidates include NEXI-001, an allogeneic cell therapy, which is in Phase I/II clinical trials for the treatment of patients with acute myeloid leukemia; NEXI-002, an autologous cell therapy that is in Phase I/II clinical trials for the treatment of patients with relapsed and/or refractory in multiple myeloma; and NEXI-003, a product candidate targeted against HPV related cancers, which is in Phase I/II clinical trials. It provides NEXI-004 which is in preclinical stage for EBV related diseases; and NEXI005 designs for patient with specific targets for solid tumors. NexImmune, Inc. was incorporated in 2011 and is headquartered in Gaithersburg, Maryland.