Head-To-Head Review: Axsome Therapeutics (NASDAQ:AXSM) versus Neoleukin Therapeutics (NASDAQ:NLTX)

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

Insider & Institutional Ownership

52.4% of Neoleukin Therapeutics shares are held by institutional investors. Comparatively, 81.5% of Axsome Therapeutics shares are held by institutional investors. 1.6% of Neoleukin Therapeutics shares are held by company insiders. Comparatively, 22.4% of Axsome Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neoleukin Therapeutics	N/A	N/A	-$57.56 million	($3.11)	-1.12
Axsome Therapeutics	$338.46 million	13.34	-$239.24 million	($6.53)	-14.27

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

Risk & Volatility

Neoleukin Therapeutics has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Axsome Therapeutics has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Neoleukin Therapeutics and Axsome Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neoleukin Therapeutics	0	0	0	0	0.00
Axsome Therapeutics	0	0	14	0	3.00

Axsome Therapeutics has a consensus price target of $124.93, indicating a potential upside of 34.09%. Given Axsome Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Axsome Therapeutics is more favorable than Neoleukin Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neoleukin Therapeutics	N/A	-37.22%	-30.91%
Axsome Therapeutics	-91.87%	-158.36%	-37.46%

Summary

Axsome Therapeutics beats Neoleukin Therapeutics on 7 of the 13 factors compared between the two stocks.

About Neoleukin Therapeutics

Neoleukin Therapeutics, Inc., a biopharmaceutical company, develops immunotherapies for cancer, inflammation, and autoimmunity disorders using protein design technology. The company's lead product candidate is NL-201, a de novo protein designed to mimic the therapeutic activity of the cytokines interleukin (IL)-2/IL-15 for the treatment of various types of cancer, including renal cell carcinoma and melanoma. The company was formerly known as Aquinox Pharmaceuticals, Inc. and changed its name to Neoleukin Therapeutics, Inc. in August 2019. Neoleukin Therapeutics, Inc. was founded in 2003 and is headquartered in Seattle, Washington.

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.