Recordati Industria Chimica E Farmaceutica (OTCMKTS:RCDTF) vs. Sanofi (NASDAQ:SNY) Critical Comparison

Sanofi (NASDAQ:SNY) and Recordati Industria Chimica E Farmaceutica (OTCMKTS:RCDTF) are both large-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Risk & Volatility

Sanofi has a beta of 0.35, suggesting 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, suggesting that its share price is 75% less volatile than the S&P 500.

Earnings & Valuation

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.

Insider & Institutional 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.

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%

Analyst Recommendations

This is a summary of recent recommendations for Sanofi and Recordati Industria Chimica E Farmaceutica, as reported by MarketBeat.com.

	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 price target of $49.50, suggesting a potential upside of 15.74%. Given Sanofi’s higher probable upside, equities research analysts plainly believe Sanofi is more favorable than Recordati Industria Chimica E Farmaceutica.

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.