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PFE vs. AZN: Which Cancer-Focused Drug Giant Is the Better Pick?
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Key Takeaways
Pfizer's oncology sales rose 9% in H1 2025, while AstraZeneca's jumped 16% in the same period.
Pfizer offers a 7.1% dividend yield, but faces looming patent losses and IRA headwinds.
AstraZeneca targets $80B in revenues by 2030, with 20 new medicine launches planned.
Pfizer (PFE - Free Report) and AstraZeneca (AZN - Free Report) are both U.S. pharmaceutical giants with a strong leadership position in oncology. For Pfizer, oncology sales comprise more than 25% of its total revenues. Its oncology revenues grew 9% in the first half of 2025. Outside of oncology, Pfizer has a solid presence in inflammation and immunology, rare diseases and vaccines.
For AstraZeneca, oncology sales now comprise around 43% of total revenues and rose 16% in the first half of 2025. AstraZeneca also has a solid presence in immunology, rare diseases, vaccines, as well as cardiovascular and respiratory.
Both companies have promising R&D pipelines capable of delivering innovative treatments and supporting future growth. But which stock presents a better investment opportunity right now? Let’s dive into their fundamentals, growth outlook and potential challenges to make a well-informed comparison.
The Case for PFE
Pfizer is one of the largest and most successful drugmakers in oncology. The 2023 acquisition of Seagen further strengthened its position in oncology.
Pfizer’s non-COVID operational revenues are improving, driven by its key in-line products like Vyndaqel, Padcev and Eliquis, new launches and newly acquired products like Nurtec and those from Seagen. Pfizer's recently launched and acquired products delivered $4.7 billion in revenues in the first half of 2025, rising approximately 15% operationally versus last year.
Its significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer expects cost cuts and internal restructuring to deliver savings of $7.7 billion by the end of 2027. Pfizer’s dividend yield stands at around 7%, which is impressive.
Pfizer’s new products/late-stage pipeline candidates and newly acquired products position it strongly for operational growth in 2025 and beyond. Pfizer expects the 2025 to 2030 revenue CAGR to be approximately 6%.
However, Pfizer faces its share of challenges. Though sales of Paxlovid and Comirnaty have stabilized in 2025 after declining significantly in the past two years, there is an element of uncertainty related to COVID sales, and they may decline further in future years.
Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products, including Eliquis, Vyndaqel, Ibrance, Xeljanz and Xtandi, will face patent expirations. Pfizer expects an unfavorable impact of approximately $1 billion from the Medicare Part D redesign under the IRA, which took effect in the first quarter of 2025 and hurt sales in the first half. Higher-priced drugs, including Vyndaqel, Ibrance, Xtandi and Xeljanz, are most affected by the IRA.
The Case for AstraZeneca
Headquartered in Cambridge, the United Kingdom, AstraZeneca has several blockbuster medicines in its portfolio with sales exceeding $1 billion, including Tagrisso, Fasenra, Farxiga, Imfinzi, Lynparza, Calquence and Ultomiris. These drugs are driving the company’s top line, backed by increasing demand trends. Almost every new product that has been launched in recent years has done well.
Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap are also contributing to top-line growth in 2025.
Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. AstraZeneca expects to generate $80 billion in total revenues by 2030. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026.
AstraZeneca faces its share of challenges. The impact of the Medicare Part D redesign hurt sales of AZN’s key drugs, Tagrisso and Lynparza, in the first half of 2025, with the negative impact expected to continue through the rest of the year. AstraZeneca expects Farxiga to be included in the volume-based procurement (VBP) plans in China in 2025, which could negatively impact its sales.
Generic/biosimilar competition in the United States and Europe is hurting sales of key drugs like Brilinta and Soliris in 2025. Generic versions of Brilinta were launched in the United States in 2025. Biosimilar versions of Soliris were launched in the United States in March 2025. Sales in its Rare Disease segment are expected to be slower in 2025 than in 2024.
How Do Estimates Compare for AZN & PFE?
The Zacks Consensus Estimate for Pfizer’s 2025 sales and EPS implies a year-over-year increase of 0.3% and 1.0%, respectively. The Zacks Consensus Estimate for earnings has risen from $3.05 per share to $3.14 per share for 2025, while that for 2026 has increased from $3.08 per share to $3.10 per share over the past 60 days.
PFE Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AZN’s 2025 sales and EPS implies a year-over-year increase of 8.4% and 11.4%, respectively. EPS estimates for 2025 have risen from $4.50 per share to $4.58 per share over the past 60 days, while those for 2026 have risen from $5.08 to $5.15 per share over the same timeframe.
AZN Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of AZN & PFE
In the year-to-date period, Pfizer’s stock has declined 9.0%, while AstraZeneca’s stock has rallied 17.6% compared with the industry’s increase of 0.5%.
Image Source: Zacks Investment Research
Pfizer looks more attractive than AZN from a valuation standpoint. Going by the price/earnings ratio, AZN’s shares currently trade at 15.44 forward earnings, slightly higher than 14.83 for the industry. However, AZN’s stock is trading below its 5-year mean of 17.76. Pfizer’s shares currently trade at 7.79 forward earnings, significantly lower than the industry and the stock’s 5-year mean of 10.67.
Image Source: Zacks Investment Research
AstraZeneca’s dividend yield is 2.4%, while Pfizer's is 7.1%. AstraZeneca’s return on equity of 32.8% is higher than Pfizer’s 21.4%.
Image Source: Zacks Investment Research
PFE or AZN: Which is a Better Pick?
With both AstraZeneca and Pfizer having a Zacks Rank #3 (Hold), choosing one stock is a difficult task. Both stocks are going neck and neck, making it tough to judge which is a better investment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For AstraZeneca, the top-line growth momentum of the first half is likely to continue in the second half. However, Brilinta LOE, Soliris biosimilar and uncertainty regarding Farxiga will remain top-line headwinds in the second half. However, the company has clearer growth targets ($80 billion in revenues by 2030)
On the other hand, for Pfizer, with its COVID-related uncertainties diminishing, its revenue volatility is declining. Though Pfizer does not expect strong top-line growth over the next three years due to the LOEs, it expects EPS growth.
However, we believe that AstraZeneca is a safer bet than Pfizer, as it has demonstrated more efficient profitability, and its upside potential appears to be higher. Pfizer’s LOE cliff in the 2026-2030 period and the volatility in stock price tilt us in favor of AstraZeneca, despite PFE’s valuation and better dividend yield.
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PFE vs. AZN: Which Cancer-Focused Drug Giant Is the Better Pick?
Key Takeaways
Pfizer (PFE - Free Report) and AstraZeneca (AZN - Free Report) are both U.S. pharmaceutical giants with a strong leadership position in oncology. For Pfizer, oncology sales comprise more than 25% of its total revenues. Its oncology revenues grew 9% in the first half of 2025. Outside of oncology, Pfizer has a solid presence in inflammation and immunology, rare diseases and vaccines.
For AstraZeneca, oncology sales now comprise around 43% of total revenues and rose 16% in the first half of 2025. AstraZeneca also has a solid presence in immunology, rare diseases, vaccines, as well as cardiovascular and respiratory.
Both companies have promising R&D pipelines capable of delivering innovative treatments and supporting future growth. But which stock presents a better investment opportunity right now? Let’s dive into their fundamentals, growth outlook and potential challenges to make a well-informed comparison.
The Case for PFE
Pfizer is one of the largest and most successful drugmakers in oncology. The 2023 acquisition of Seagen further strengthened its position in oncology.
Pfizer’s non-COVID operational revenues are improving, driven by its key in-line products like Vyndaqel, Padcev and Eliquis, new launches and newly acquired products like Nurtec and those from Seagen. Pfizer's recently launched and acquired products delivered $4.7 billion in revenues in the first half of 2025, rising approximately 15% operationally versus last year.
Its significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer expects cost cuts and internal restructuring to deliver savings of $7.7 billion by the end of 2027. Pfizer’s dividend yield stands at around 7%, which is impressive.
Pfizer’s new products/late-stage pipeline candidates and newly acquired products position it strongly for operational growth in 2025 and beyond. Pfizer expects the 2025 to 2030 revenue CAGR to be approximately 6%.
However, Pfizer faces its share of challenges. Though sales of Paxlovid and Comirnaty have stabilized in 2025 after declining significantly in the past two years, there is an element of uncertainty related to COVID sales, and they may decline further in future years.
Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products, including Eliquis, Vyndaqel, Ibrance, Xeljanz and Xtandi, will face patent expirations. Pfizer expects an unfavorable impact of approximately $1 billion from the Medicare Part D redesign under the IRA, which took effect in the first quarter of 2025 and hurt sales in the first half. Higher-priced drugs, including Vyndaqel, Ibrance, Xtandi and Xeljanz, are most affected by the IRA.
The Case for AstraZeneca
Headquartered in Cambridge, the United Kingdom, AstraZeneca has several blockbuster medicines in its portfolio with sales exceeding $1 billion, including Tagrisso, Fasenra, Farxiga, Imfinzi, Lynparza, Calquence and Ultomiris. These drugs are driving the company’s top line, backed by increasing demand trends. Almost every new product that has been launched in recent years has done well.
Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap are also contributing to top-line growth in 2025.
Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. AstraZeneca expects to generate $80 billion in total revenues by 2030. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026.
AstraZeneca faces its share of challenges. The impact of the Medicare Part D redesign hurt sales of AZN’s key drugs, Tagrisso and Lynparza, in the first half of 2025, with the negative impact expected to continue through the rest of the year. AstraZeneca expects Farxiga to be included in the volume-based procurement (VBP) plans in China in 2025, which could negatively impact its sales.
Generic/biosimilar competition in the United States and Europe is hurting sales of key drugs like Brilinta and Soliris in 2025. Generic versions of Brilinta were launched in the United States in 2025. Biosimilar versions of Soliris were launched in the United States in March 2025. Sales in its Rare Disease segment are expected to be slower in 2025 than in 2024.
How Do Estimates Compare for AZN & PFE?
The Zacks Consensus Estimate for Pfizer’s 2025 sales and EPS implies a year-over-year increase of 0.3% and 1.0%, respectively. The Zacks Consensus Estimate for earnings has risen from $3.05 per share to $3.14 per share for 2025, while that for 2026 has increased from $3.08 per share to $3.10 per share over the past 60 days.
PFE Estimate Movement
The Zacks Consensus Estimate for AZN’s 2025 sales and EPS implies a year-over-year increase of 8.4% and 11.4%, respectively. EPS estimates for 2025 have risen from $4.50 per share to $4.58 per share over the past 60 days, while those for 2026 have risen from $5.08 to $5.15 per share over the same timeframe.
AZN Estimate Movement
Price Performance and Valuation of AZN & PFE
In the year-to-date period, Pfizer’s stock has declined 9.0%, while AstraZeneca’s stock has rallied 17.6% compared with the industry’s increase of 0.5%.
Pfizer looks more attractive than AZN from a valuation standpoint. Going by the price/earnings ratio, AZN’s shares currently trade at 15.44 forward earnings, slightly higher than 14.83 for the industry. However, AZN’s stock is trading below its 5-year mean of 17.76. Pfizer’s shares currently trade at 7.79 forward earnings, significantly lower than the industry and the stock’s 5-year mean of 10.67.
AstraZeneca’s dividend yield is 2.4%, while Pfizer's is 7.1%. AstraZeneca’s return on equity of 32.8% is higher than Pfizer’s 21.4%.
PFE or AZN: Which is a Better Pick?
With both AstraZeneca and Pfizer having a Zacks Rank #3 (Hold), choosing one stock is a difficult task. Both stocks are going neck and neck, making it tough to judge which is a better investment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For AstraZeneca, the top-line growth momentum of the first half is likely to continue in the second half. However, Brilinta LOE, Soliris biosimilar and uncertainty regarding Farxiga will remain top-line headwinds in the second half. However, the company has clearer growth targets ($80 billion in revenues by 2030)
On the other hand, for Pfizer, with its COVID-related uncertainties diminishing, its revenue volatility is declining. Though Pfizer does not expect strong top-line growth over the next three years due to the LOEs, it expects EPS growth.
However, we believe that AstraZeneca is a safer bet than Pfizer, as it has demonstrated more efficient profitability, and its upside potential appears to be higher. Pfizer’s LOE cliff in the 2026-2030 period and the volatility in stock price tilt us in favor of AstraZeneca, despite PFE’s valuation and better dividend yield.