PMV Pharmaceuticals (NASDAQ:PMVP) vs. Axsome Therapeutics (NASDAQ:AXSM) Critical Analysis
by Danessa Lincoln · The Markets DailyPMV Pharmaceuticals (NASDAQ:PMVP – Get Free Report) and Axsome Therapeutics (NASDAQ:AXSM – Get Free Report) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Valuation and Earnings
This table compares PMV Pharmaceuticals and Axsome Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PMV Pharmaceuticals | N/A | N/A | -$68.96 million | ($0.97) | -1.84 |
| Axsome Therapeutics | $270.60 million | 15.92 | -$239.24 million | ($6.51) | -13.93 |
PMV Pharmaceuticals has higher earnings, but lower revenue 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.
Risk & Volatility
PMV Pharmaceuticals has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Axsome Therapeutics has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for PMV Pharmaceuticals and Axsome Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PMV Pharmaceuticals | 0 | 0 | 4 | 1 | 3.20 |
| Axsome Therapeutics | 0 | 0 | 14 | 0 | 3.00 |
PMV Pharmaceuticals presently has a consensus price target of $5.75, suggesting a potential upside of 223.03%. Axsome Therapeutics has a consensus price target of $124.64, suggesting a potential upside of 37.42%. Given PMV Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts clearly believe PMV Pharmaceuticals is more favorable than Axsome Therapeutics.
Insider and Institutional Ownership
90.2% of PMV Pharmaceuticals shares are held by institutional investors. Comparatively, 81.5% of Axsome Therapeutics shares are held by institutional investors. 7.6% of PMV Pharmaceuticals shares are held by insiders. Comparatively, 22.4% of Axsome Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares PMV Pharmaceuticals and Axsome Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PMV Pharmaceuticals | N/A | -21.96% | -19.80% |
| Axsome Therapeutics | -105.85% | -117.46% | -36.39% |
Summary
PMV Pharmaceuticals beats Axsome Therapeutics on 11 of the 14 factors compared between the two stocks.
About PMV Pharmaceuticals
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.
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.