Insmed (NASDAQ: INSM) and Axsome Therapeutics (NASDAQ:AXSM) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

73.1% of Insmed shares are owned by institutional investors. Comparatively, 27.1% of Axsome Therapeutics shares are owned by institutional investors. 4.0% of Insmed shares are owned by insiders. Comparatively, 35.2% of Axsome Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Insmed has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Axsome Therapeutics has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Insmed and Axsome Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insmed 0 1 6 0 2.86
Axsome Therapeutics 0 0 4 0 3.00

Insmed presently has a consensus target price of $36.71, suggesting a potential upside of 17.52%. Axsome Therapeutics has a consensus target price of $19.50, suggesting a potential upside of 242.11%. Given Axsome Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Axsome Therapeutics is more favorable than Insmed.

Profitability

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

Net Margins Return on Equity Return on Assets
Insmed N/A -130.41% -85.48%
Axsome Therapeutics N/A -116.34% -74.68%

Earnings and Valuation

This table compares Insmed and Axsome Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Insmed N/A N/A -$180.87 million ($3.03) -10.31
Axsome Therapeutics N/A N/A -$28.75 million ($1.47) -3.88

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

Summary

Axsome Therapeutics beats Insmed on 8 of the 10 factors compared between the two stocks.

About Insmed

Insmed Incorporated is a biopharmaceutical company. The Company operates through development and commercialization of therapies for patients with rare diseases segment. Its lead product candidate is ARIKAYCE, or liposomal amikacin for inhalation (LAI), which is in late-stage development for adult patients with treatment refractory nontuberculous mycobacteria (NTM) lung disease caused by Mycobacterium avium complex (MAC). Its earlier-stage pipeline includes preclinical compounds that the Company is evaluating in multiple rare diseases of unmet medical need, including methicillin-resistant staph aureus and NTM. Its earlier clinical-stage pipeline includes INS1007 and INS1009. INS1007 is an oral, reversible inhibitor of dipeptidyl peptidase 1. INS1009 is an inhaled nanoparticle formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension. It has completed a Phase I study of INS1009.

About Axsome Therapeutics

Axsome Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in developing therapies for the management of central nervous system (CNS) disorders, including pain. It operates in the business of developing novel therapies for the management of CNS disorders segment. Its product candidate, AXS-02 (disodium zoledronate tetrahydrate), is an oral, targeted, non opioid therapeutic for chronic pain. It is developing AXS 02 for the treatment of pain in over three conditions, such as complex regional pain syndrome (CRPS); knee osteoarthritis (OA) associated with bone marrow lesions (BMLs), and chronic low back pain (CLBP), associated with type I, or mixed type I and type II Modic changes (MCs). Its product candidate, AXS 05, is a fixed dose combination of dextromethorphan (DM) and bupropion. It is developing AXS 05 for the treatment of over two conditions, such as treatment resistant depression (TRD), and agitation in patients with Alzheimer’s disease (AD).

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