Pharma/biotech giants Pfizer (PFE Quick QuotePFE - Free Report) and Bristol Myers (BMY Quick QuoteBMY - Free Report) boast a dominant position in the lucrative oncology space.

Oncology or cancer is one of the most sought-after areas in the pharma/biotech space. As the world at large continues to grapple with a significant increase in the number of cancer patients, the market for cancer medicines is expected to grow.

Pfizer is one of the largest and most successful drugmakers in the field of oncology. Oncology sales comprise around 27% of its total revenues.

Oncology is a key therapeutic area of focus for Bristol Myers, which is developing and delivering transformational drugs in this space.

Both Pfizer and Bristol Myers maintain strong positions in their core therapeutic markets and have historically generated solid shareholder returns. Evaluating their fundamentals, growth drivers, pipeline strength, potential risks and valuation levels can help investors determine which stock currently offers the more compelling investment opportunity.

The Case for Pfizer

Pfizer has built an innovative oncology product portfolio focused on targeting cancer through multiple modalities, including small molecules, antibody-drug conjugates (ADCs), multispecific antibodies, and other immuno-oncology biologics. These therapies address a wide range of cancers, such as breast, genitourinary, hematologic, melanoma, gastrointestinal, gynecological and lung cancers.

Approved drugs in the portfolio include Ibrance, Xtandi, Padcev, Lorbrena, Adcetris, Inlyta, Braftovi/Mektovi, Bosulif, Tukysa, Elrexfio and Talzenna, among others. Breast cancer drug Ibrance is one of the top revenue generators.

The acquisition of Seagen in December 2023 strengthened PFE’s oncology portfolio by adding four ADCs — Adcetris, Padcev, Tukysa and Tivdak. The incremental sales from Seagen boosted oncology sales in 2025. Seagen also has some next-generation ADC candidates in its pipeline and their successful development should further strengthen its portfolio.

PFE is working on the label expansion of many of its cancer drugs that should boost sales.

Pfizer also inked a licensing agreement with 3SBio for the development, manufacturing and commercialization of SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, outside China.

PFE has oncology biosimilars in its portfolio and markets six of them for cancer. Oncology biosimilars primarily include Retacrit, Ruxience, Zirabev, Trazimera and Nivestym. Its oncology biosimilars contributed $1.3 billion in sales in 2025, rising 26% year over year.

Pfizer is also advancing a robust pipeline of oncology candidates, with several entering late-stage development. By 2030, it expects to have eight or more blockbuster oncology medicines in its portfolio.

Apart from oncology, Pfizer’s portfolio has a variety of drugs and vaccines for diseases like COVID-19, inflammation & immunology diseases, rare diseases and migraine, among others.

The Case for Bristol Myers

BMY is focused on extending and strengthening its leadership in immuno-oncology (IO), as well as diversifying beyond IO.

Blockbuster IO drug Opdivo, approved for several cancer indications, drives its oncology franchise along with Yervoy and Opdualag.

The FDA approval of Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use has boosted its IO franchise. Per BMY, this new subcutaneous formulation of Opdivo should help extend the reach and impact of its IO franchise to patients into the next decade.

BMY has been active on the acquisition front to expand its oncology portfolio/pipeline. In 2024, BMY acquired Mirati, a commercial-stage targeted oncology company, obtaining the rights to commercialize lung cancer medicine Krazati and to further develop several clinical assets, including PRMT5 Inhibitor.

Krazati, a KRAS inhibitor, is approved for second-line non-small cell lung cancer (NSCLC) and is in clinical development with a PD-1 inhibitor for first-line NSCLC. It is also FDA approved for advanced or metastatic KRAS-mutated colorectal cancer with cetuximab. In addition, PRMT5 Inhibitor is a potential first-in-class MTA-cooperative PRMT5 inhibitor, which is advancing to the next stage of development.

The acquisition of RayzeBio, a leader in the field of radiopharmaceuticals for solid tumor oncology, provided BMY with RYZ101, a late-stage asset, an investigational new drug engine and in-house manufacturing capabilities.

In 2022, BMY acquired Turning Point and added lead asset, repotrectinib, and other clinical and pre-clinical stage assets to its pipeline. Repotrectinib was approved by the FDA in November 2023 and is marketed under the brand name Augtyro.

Augtyro, a kinase inhibitor, is indicated for the treatment of adult patients with locally advanced or metastatic ROS1-positive NSCLC. It is also intended for the treatment of adult and pediatric patients 12 years of age and older with solid tumors that have NTRK gene fusion, are locally advanced or metastatic or where surgical resection is likely to result in severe morbidity, and have progressed following treatment or have no satisfactory alternative therapy.

The company has also collaborated with BioNTech for the global co-development and co-commercialization of the latter’s investigational bispecific antibody pumitamig for numerous solid tumor types.

Bristol Myers is also focused on developing drugs with presence in hematology, immunology, cardiovascular, neuroscience and other therapeutic areas.

A Look at Estimates: PFE vs BMY

The Zacks Consensus Estimate for PFE’s 2026 sales implies a year-over-year decrease of 2.51%, and that for earnings per share (EPS) suggests a decline of 7.76%.  EPS estimates for 2026 and 2027 have moved south in the past 60 days.

PFE’s Estimate Movement

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BMY’s 2026 sales implies a year-over-year decrease of 2.44% while that for EPS suggests an increase of 1.79%. EPS estimates for 2026 have increased to $6.26 from $6.04 in the past 60 days, while that for 2027 has increased to $6.09 from $5.91 in the same time frame.

BMY’s Estimate Movement

Image Source: Zacks Investment Research

Price Performance and Valuation of PFE and BMY

From a price-performance perspective, PFE has fetched better returns than BMY so far this year. Shares of PFE have risen 2%, while those of BMY have lost 1.5%. The large-cap pharma industry has gained 10% in the said period.

Image Source: Zacks Investment Research

From a valuation standpoint, we use the P/E ratio of the large-cap pharma industry to compare these companies. Going by the same, BMY is slightly more expensive than PFE. BMY’s shares currently trade at 9.49X forward earnings, higher than 9.04X for PFE.

Image Source: Zacks Investment Research

PFE and BMY’s attractive dividend yield is a strong positive for investors. However, PFE’s dividend yield of 6.47% is higher than BMY’s 4.27%.

Which Stock Is a Better Pick for Now?

Large pharma/biotech companies are generally considered safe havens for investors interested in this sector.

Since both BMY and PFE stocks currently carry a Zacks Rank #3 (Hold), choosing one over the other could be tricky. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PFE has a strong and diverse portfolio. Key products like Vyndaqel, Padcev and Eliquis, new launches and newly acquired products should help the company partially offset the impact of patent expirations of key drugs.

BMY’s efforts to revive the top line in the face of generic challenges for key drugs are commendable. Growth in sales of newer drugs should enable the company to offset the impact of generic competition of key drugs. The recent collaborations and acquisitions also strengthen its pipeline.

However, we believe PFE is a better pick at present, given its attractive valuation and diversified portfolio.