Critical Analysis: PMV Pharmaceuticals (NASDAQ:PMVP) & Axsome Therapeutics (NASDAQ:AXSM)

Axsome Therapeutics (NASDAQ:AXSMGet Free Report) and PMV Pharmaceuticals (NASDAQ:PMVPGet Free Report) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

81.5% of Axsome Therapeutics shares are owned by institutional investors. Comparatively, 90.2% of PMV Pharmaceuticals shares are owned by institutional investors. 22.4% of Axsome Therapeutics shares are owned by insiders. Comparatively, 7.6% of PMV Pharmaceuticals 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.

Risk and Volatility

Axsome Therapeutics has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, PMV Pharmaceuticals has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Axsome Therapeutics and PMV Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axsome Therapeutics 0 0 14 0 3.00
PMV Pharmaceuticals 0 0 4 1 3.20

Axsome Therapeutics currently has a consensus price target of $124.64, indicating a potential upside of 37.42%. PMV Pharmaceuticals has a consensus price target of $5.75, indicating a potential upside of 223.03%. Given PMV Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe PMV Pharmaceuticals is more favorable than Axsome Therapeutics.

Profitability

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

Net Margins Return on Equity Return on Assets
Axsome Therapeutics -105.85% -117.46% -36.39%
PMV Pharmaceuticals N/A -21.96% -19.80%

Valuation and Earnings

This table compares Axsome Therapeutics and PMV Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axsome Therapeutics $270.60 million 15.92 -$239.24 million ($6.51) -13.93
PMV Pharmaceuticals N/A N/A -$68.96 million ($0.97) -1.84

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

Summary

PMV Pharmaceuticals beats Axsome Therapeutics on 11 of the 14 factors compared between the two stocks.

About Axsome Therapeutics

(Get Free Report)

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 PMV Pharmaceuticals

(Get Free Report)

PMV Pharmaceuticals, Inc., a precision oncology company, engages in the discovery and development of small molecule and tumor-agnostic therapies for p53 mutations in cancer. It's lead product candidate is PC14586, a small molecule that corrects mutant p53 protein containing the Y220C mutation and restores wild-type p53 function. The company was formerly known as PJ Pharmaceuticals, Inc. and changed its name to PMV Pharmaceuticals, Inc. in July 2013. PMV Pharmaceuticals, Inc. was incorporated in 2013 and is based in Princeton, New Jersey.

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