Financial Analysis: Immuneering (NASDAQ:IMRX) vs. Axsome Therapeutics (NASDAQ:AXSM)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axsome Therapeutics	$385.69 million	23.86	-$287.22 million	($4.67)	-39.09
Immuneering	N/A	N/A	-$61.04 million	($1.78)	-2.77

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

Volatility & Risk

Axsome Therapeutics has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Immuneering has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Axsome Therapeutics and Immuneering, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axsome Therapeutics	2	0	19	0	2.81
Immuneering	1	0	5	1	2.86

Axsome Therapeutics presently has a consensus target price of $208.72, suggesting a potential upside of 14.34%. Immuneering has a consensus target price of $16.50, suggesting a potential upside of 234.69%. Given Immuneering’s stronger consensus rating and higher probable upside, analysts clearly believe Immuneering is more favorable than Axsome Therapeutics.

Insider & Institutional Ownership

81.5% of Axsome Therapeutics shares are held by institutional investors. Comparatively, 67.7% of Immuneering shares are held by institutional investors. 22.3% of Axsome Therapeutics shares are held by insiders. Comparatively, 22.9% of Immuneering shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Axsome Therapeutics	-40.90%	-277.31%	-28.81%
Immuneering	N/A	-73.49%	-65.01%

Summary

Immuneering beats Axsome Therapeutics on 10 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 Immuneering

Immuneering Corporation, a clinical-stage oncology company, engages in the development of medicines for broad populations of cancer patients. Its lead product candidates include IMM-1-104, a dual-MEK inhibitor currently under Phase 1/2a clinical trial to treat patients with cancer, including pancreatic, melanoma, colorectal, and non-small cell lung cancer caused by mutations of RAS and/or RAF; and IMM-6-415 is in Investigational New Drug application to treat solid tumors. Immuneering Corporation was incorporated in 2008 and is based in Cambridge, Massachusetts.