Head to Head Analysis: Axsome Therapeutics (NASDAQ:AXSM) and XOMA (NASDAQ:XOMA)

Axsome Therapeutics (NASDAQ:AXSMGet Rating) and XOMA (NASDAQ:XOMAGet Rating) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

55.0% of Axsome Therapeutics shares are owned by institutional investors. Comparatively, 55.1% of XOMA shares are owned by institutional investors. 26.0% of Axsome Therapeutics shares are owned by insiders. Comparatively, 10.9% of XOMA shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Axsome Therapeutics and XOMA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axsome Therapeutics N/A -679.57% -126.65%
XOMA 21.35% 6.63% 5.73%

Risk and Volatility

Axsome Therapeutics has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, XOMA has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Earnings and Valuation

This table compares Axsome Therapeutics and XOMA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axsome Therapeutics N/A N/A -$130.40 million ($3.92) -15.83
XOMA $38.16 million 5.10 $15.80 million $0.31 54.84

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Axsome Therapeutics and XOMA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axsome Therapeutics 0 1 7 0 2.88
XOMA 0 0 1 0 3.00

Axsome Therapeutics currently has a consensus price target of $108.56, suggesting a potential upside of 74.89%. XOMA has a consensus price target of $69.00, suggesting a potential upside of 305.88%. Given XOMA’s stronger consensus rating and higher probable upside, analysts clearly believe XOMA is more favorable than Axsome Therapeutics.

Summary

XOMA beats Axsome Therapeutics on 10 of the 13 factors compared between the two stocks.

About Axsome Therapeutics

(Get Rating)

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 product pipeline includes AXS-05, a therapeutic for the treatment of major depressive disorder and resistant depression disorders; and that is in the 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. It is also developing AXS-07, a novel, oral, rapidly absorbed, multi-mechanistic, and investigational medicine that has completed two Phase III trials for the acute treatment of migraine; AXS-12, a selective and potent norepinephrine reuptake inhibitor, which is in Phase III trial to treat narcolepsy; and AXS-14, a novel, oral, and investigational medicine that is in Phase III trial for the treatment of fibromyalgia. 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 XOMA

(Get Rating)

XOMA Corporation operates as a biotechnology royalty aggregator in Europe, the United States, and the Asia Pacific. The company engages in helping biotech companies for enhancing human health. It acquires the potential future economics associated with pre-commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. The company focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners. It has a portfolio with approximately 70 assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.

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