Pfizer (PFE 0.85%) and Viatris (VTRS 1.40%) have a common past. That's because Viatris came about a few years ago when Pfizer's Upjohn business merged with generic drug giant, Mylan. Since, their share performance paths have diverged. Pfizer stock soared through the earlier days of the pandemic as it took leadership of the vaccine and treatment markets. Meanwhile, Viatris shares have steadily declined.

Today, both stocks seem to be trading at reasonable valuations. They offer dividends and future products that could drive some growth. But which of these companies represents the better buy right now? Let's find out.

The case for Viatris

Viatris delivers billions of dollars in revenue annually thanks to a portfolio of well-known generics and branded medicines. Many of its drugs are widely used to treat common problems -- from allergies to high blood pressure. But, with the exception of cholesterol drug Lipitor, these products generally don't bring in blockbuster revenue.

So, it's important for Viatris to stock its pipeline with potential products that could continually add to growth. And that's what the company is doing. Viatris forecasts more than $1 billion in annual peak sales from its pipeline of complex injectables by 2027. It expects more than $1 billion in annual peak sales from its pipeline of novel and complex products by 2028. And its eye care portfolio could increase net sales by $1 billion in 2028.

Meanwhile, Viatris says it plans to continue rewarding shareholders through dividends and share repurchases. So, this is a stock you can count on for passive income. Viatris pays an annual dividend of 48 cents per share, representing a yield of 4.72%. And with free cash flow on the rise since Viatris' launch, the company has what it takes to fund this program.

The case for Pfizer

Pfizer wowed the world with its coronavirus vaccine and treatment -- and the revenue these products generated. Thanks to them, Pfizer reported record revenue of $100 billion last year. The pandemic is a unique situation, so the company isn't likely to sell as many vaccines and treatments in a post-pandemic world.

Still, it's important to remember that the coronavirus revenue opportunity isn't over. In fact, Pfizer expects to generate multi-billion-dollar revenue from covid products for the foreseeable future.

Investors also have worried about some of Pfizer's older blockbusters losing exclusivity in the coming years. Pfizer said this would reduce revenue by $17 billion from 2025 through 2030. But here's the good news. Pfizer is in the middle of a period of record product launches. If all goes smoothly, in an 18-month period, the company will release 19 new products.

This should more than make up for lost revenue. Pfizer expects $20 billion in 2030 revenue from its own drug launches and $25 billion from business development deals. All of this could signal a new wave of growth for the company.

Finally, Pfizer considers dividend growth a priority, raising the payment for 14 consecutive years. The company offers shareholders an annual dividend of $1.64 a share at a yield of 4.52%.

Viatris or Pfizer

Let's consider the valuations of each company. Viatris clearly is cheaper if we look at the price in relation to forward earnings estimates.

VTRS PE Ratio (Forward) Chart

VTRS PE Ratio (Forward) data by YCharts

But it's also key to look farther out into the future and consider a company's growth prospects. For a company focused on generics, Viatris could generate satisfactory growth in the coming years. And it could make a decent addition to your portfolio.

Overall, though, I would rather pay a little bit more for a stock and get access to a stronger growth story. And that's why I think Pfizer is a better buy right now.

Pfizer stock is reasonably priced these days because the market is focusing on upcoming declines in revenue from a pandemic peak. But if we focus on the future, there's plenty to be excited about. Pfizer's potential new products signal a new era of growth ahead. And today we can get in on that story in one of the earliest chapters.