Axsome Therapeutics (NASDAQ:AXSM – Get Free Report) and Cronos Group (NASDAQ:CRON – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Institutional and Insider Ownership
81.5% of Axsome Therapeutics shares are held by institutional investors. Comparatively, 8.7% of Cronos Group shares are held by institutional investors. 20.6% of Axsome Therapeutics shares are held by insiders. Comparatively, 7.8% of Cronos Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Axsome Therapeutics and Cronos Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axsome Therapeutics | -24.68% | -265.55% | -28.10% |
| Cronos Group | 39.08% | 4.85% | 4.62% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axsome Therapeutics | 1 | 2 | 17 | 1 | 2.86 |
| Cronos Group | 0 | 1 | 3 | 1 | 3.00 |
Axsome Therapeutics currently has a consensus target price of $274.68, indicating a potential upside of 92.82%. Cronos Group has a consensus target price of $2.30, indicating a potential downside of 31.24%. Given Axsome Therapeutics’ higher possible upside, equities analysts clearly believe Axsome Therapeutics is more favorable than Cronos Group.
Earnings and Valuation
This table compares Axsome Therapeutics and Cronos Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axsome Therapeutics | $776.57 million | 9.61 | -$183.17 million | ($3.75) | -37.99 |
| Cronos Group | $146.59 million | 8.41 | -$9.45 million | $0.20 | 16.73 |
Cronos Group has lower revenue, but higher earnings than Axsome Therapeutics. Axsome Therapeutics is trading at a lower price-to-earnings ratio than Cronos Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Axsome Therapeutics has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Cronos Group has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.
Summary
Cronos Group beats Axsome Therapeutics on 8 of the 14 factors compared between the two stocks.
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.
About Cronos Group
Cronos Group Inc. operates as a cannabinoid company that engages in the cultivation, production and marketing of cannabis products in Canada, Israel, and Germany. It offers dried flower, pre-rolls, oils, vaporizers, edibles, and cannabis tinctures under the Spinach, Lord Jones, and PEACE NATURALS brands. Cronos Group Inc. was founded in 2012 and is based in Toronto, Canada.
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