Head-To-Head Survey: Mirum Pharmaceuticals (NASDAQ:MIRM) & Axsome Therapeutics (NASDAQ:AXSM)

Mirum Pharmaceuticals (NASDAQ:MIRM) and Axsome Therapeutics (NASDAQ:AXSM) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Mirum Pharmaceuticals and Axsome Therapeutics’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mirum Pharmaceuticals	$264.38 million	7.33	-$163.41 million	($3.71)	-11.08
Axsome Therapeutics	$291.49 million	14.34	-$239.24 million	($6.38)	-13.79

Mirum Pharmaceuticals has higher earnings, but lower revenue than Axsome Therapeutics. Axsome Therapeutics is trading at a lower price-to-earnings ratio than Mirum Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mirum Pharmaceuticals and Axsome Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mirum Pharmaceuticals	-69.67%	-56.46%	-19.61%
Axsome Therapeutics	-118.07%	-87.17%	-32.81%

Institutional and Insider Ownership

81.5% of Axsome Therapeutics shares are owned by institutional investors. 22.9% of Mirum Pharmaceuticals shares are owned by insiders. Comparatively, 22.4% of Axsome Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Mirum Pharmaceuticals has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Axsome Therapeutics has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Mirum Pharmaceuticals and Axsome Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mirum Pharmaceuticals	0	0	10	2	3.17
Axsome Therapeutics	0	0	13	0	3.00

Mirum Pharmaceuticals presently has a consensus target price of $56.27, indicating a potential upside of 36.85%. Axsome Therapeutics has a consensus target price of $123.38, indicating a potential upside of 40.23%. Given Axsome Therapeutics’ higher probable upside, analysts clearly believe Axsome Therapeutics is more favorable than Mirum Pharmaceuticals.

Summary

Mirum Pharmaceuticals beats Axsome Therapeutics on 9 of the 15 factors compared between the two stocks.

About Mirum Pharmaceuticals

Mirum Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies for debilitating rare and orphan diseases. Its lead product candidate is LIVMARLI (maralixibat), an orally administered and minimally absorbed ileal bile acid transporter (IBAT) inhibitor that is approved for the treatment of cholestatic pruritus in patients with Alagille syndrome in the United States and internationally. The company is also involved in the commercialization of Cholbam, a cholic acid capsule, which is approved as treatment for pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects and for adjunctive treatment of patients with peroxisomal disorders, including peroxisome biogenesis disorder-Zellweger spectrum disorder and Smith-Lemli-Opitz syndrome; and Chenodal, a tablet, which is approved for the treatment of radiolucent stones in the gallbladder, and under Phase 3 development for the treatment cerebrotendinous xanthomatosis. In addition, it develops Volixibat, an oral and minimally absorbed agent designed to inhibit IBAT, currently under Phase 2b clinical trial for the treatment of adult patients with cholestatic liver diseases. The company was incorporated in 2018 and is headquartered in Foster City, California.

About Axsome Therapeutics

Axsome Therapeutics, Inc., a biopharmaceutical company, engages in the development of novel therapies for central nervous system (CNS) disorders in the United States. The company's commercial product portfolio includes Auvelity (dextromethorphan-bupropion), a N-methyl-D-aspartate receptor antagonist with multimodal activity indicated for the treatment of major depressive disorder; and Sunosi (solriamfetol), a medication indicated to the treatment of excessive daytime sleepiness in patients with narcolepsy or obstructive sleep apnea. It is also developing AXS-05, which is in Phase III clinical trial to treat Alzheimer's disease agitation, as well as that has completed phase II clinical trial for the treatment of smoking cessation; AXS-07, an investigational medicine that has completed Phase III trials for the acute treatment of migraine; AXS-12, an investigational medicine, which is in Phase III trial to treat narcolepsy; AXS-14, a selective and potent norepinephrine reuptake inhibitor that has completed Phase III trial for the treatment of fibromyalgia and other conditions; and solriamfetol, a dual-acting dopamine and norepinephrine reuptake inhibitor, which has completed a Phase 2 trial for treating attention-deficit/hyperactivity disorder, and is in phase 2 major depressive, binge eating, and shift work disorder. Axsome Therapeutics, Inc. has a research collaboration agreement with Duke University for evaluating AXS-05 in smoking cessation. The company was incorporated in 2012 and is based in New York, New York.