Pfizer vs BMY: Which Oncology Drugmaker Is a Better Choice for Now?

An analysis comparing Pfizer (PFE) and Bristol Myers (BMY) favors Pfizer as the better oncology stock pick currently, citing its more diverse portfolio and higher dividend yield of 7.2% compared to BMY's 5.29%. While both companies face challenges, including patent expirations and sales declines, Pfizer's recent acquisition of Seagen and a robust pipeline of oncology candidates position it favorably; BMY is working to expand their oncology portfolio through acquisitions like Mirati and RayzeBio, but faces headwinds with sales and EPS estimates trending downward for 2025.

Analysis

Pfizer (PFE) and Bristol Myers Squibb (BMY) are significant competitors in the lucrative oncology market, which constitutes approximately 25% of Pfizer's total revenues. Pfizer's strategic acquisition of Seagen in December 2023 has notably bolstered its oncology capabilities, adding four antibody-drug conjugates (ADCs) like Adcetris and Padcev that contributed to sales growth in 2024 and Q1 2025; PFE aims for eight or more blockbuster oncology drugs by 2030. Bristol Myers is also aggressively expanding its oncology footprint through recent acquisitions, including Mirati for its lung cancer drug Krazati and RayzeBio for radiopharmaceutical assets, complementing its established immuno-oncology franchise led by Opdivo. Financially, Pfizer projects a modest 0.6% decrease in 2025 sales and a 1.61% decline in EPS, though its 2025-2026 EPS estimates have recently trended upward. In contrast, Bristol Myers anticipates a more substantial 4.13% sales decrease in 2025; while its EPS is forecasted to surge by 487.83%, this is primarily due to a low 2024 base depressed by acquisition expenses, and its 2025-2026 EPS estimates have been revised downward. Year-to-date, Pfizer's stock has declined 6.8%, outperforming Bristol Myers' 15.4% loss, against a 0.3% decline for the large-cap pharma industry. Pfizer offers a higher dividend yield of 7.2% compared to BMY's 5.29%, though it trades at a slightly higher forward P/E ratio of 7.77x versus BMY's 7.22x. The article concludes PFE is currently a better pick due to its portfolio diversity and superior dividend yield.

Key Decisions for Investors

• Investors may find Pfizer (PFE) a more compelling investment than Bristol Myers (BMY) in the near term, considering PFE's higher dividend yield (7.2%), comparatively better stock performance YTD, and the strengthening of its oncology pipeline via the Seagen acquisition.
• Closely monitor the integration and commercial success of PFE's newly acquired Seagen assets and BMY's Mirati and RayzeBio assets, as these are crucial for offsetting challenges such as PFE's patent expirations and BMY's generic competition.
• Evaluate BMY's projected 487.83% EPS growth for 2025 with caution, recognizing it stems from a low 2024 base due to acquisition costs, and note the recent downward revisions to its 2025 and 2026 EPS estimates and a larger anticipated sales decline.