Reviewing Axsome Therapeutics (AXSM) and Its Rivals

Axsome Therapeutics (NASDAQ:AXSM) is one of 894 publicly-traded companies in the “Pharmaceuticals” industry, but how does it compare to its competitors? We will compare Axsome Therapeutics to related companies based on the strength of its analyst recommendations, valuation, risk, dividends, institutional ownership, profitability and earnings.

Profitability

This table compares Axsome Therapeutics and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axsome Therapeutics	-18.18%	-198.73%	-22.03%
Axsome Therapeutics Competitors	-2,393.19%	-220.45%	-16.12%

Risk & Volatility

Axsome Therapeutics has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Axsome Therapeutics’ competitors have a beta of -0.05, meaning that their average stock price is 105% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Axsome Therapeutics and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axsome Therapeutics	1	2	17	1	2.86
Axsome Therapeutics Competitors	7820	13783	25793	1036	2.41

Axsome Therapeutics currently has a consensus price target of $267.58, indicating a potential upside of 85.34%. As a group, “Pharmaceuticals” companies have a potential upside of 24.45%. Given Axsome Therapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Axsome Therapeutics is more favorable than its competitors.

Institutional & Insider Ownership

81.5% of Axsome Therapeutics shares are held by institutional investors. Comparatively, 32.5% of shares of all “Pharmaceuticals” companies are held by institutional investors. 20.6% of Axsome Therapeutics shares are held by insiders. Comparatively, 14.1% of shares of all “Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Axsome Therapeutics and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Axsome Therapeutics	$638.50 million	-$183.17 million	-47.18
Axsome Therapeutics Competitors	$3.54 billion	$3.17 billion	553.75

Axsome Therapeutics’ competitors have higher revenue and earnings than Axsome Therapeutics. Axsome Therapeutics is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Axsome Therapeutics beats its competitors on 9 of the 13 factors compared.

Axsome Therapeutics Company Profile

Axsome Therapeutics is a biopharmaceutical company focused on developing and commercializing treatments for central nervous system disorders. The company is headquartered in New York and is led by founder, chairman and chief executive officer Herriot Tabuteau. Its marketed products include Auvelity, an oral treatment for major depressive disorder in adults, and Sunosi, which is used to improve wakefulness in adults with excessive daytime sleepiness associated with narcolepsy or obstructive sleep apnea.