Contrasting FibroBiologics (NASDAQ:FBLG) and Axsome Therapeutics (NASDAQ:AXSM)

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

Institutional & Insider Ownership

81.5% of Axsome Therapeutics shares are held by institutional investors. 22.3% of Axsome Therapeutics shares are held by company insiders. Comparatively, 20.0% of FibroBiologics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Axsome Therapeutics and FibroBiologics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axsome Therapeutics	1	0	16	1	2.94
FibroBiologics	1	0	3	0	2.50

Axsome Therapeutics currently has a consensus price target of $179.88, suggesting a potential upside of 21.69%. FibroBiologics has a consensus price target of $12.33, suggesting a potential upside of 4,736.60%. Given FibroBiologics’ higher probable upside, analysts clearly believe FibroBiologics is more favorable than Axsome Therapeutics.

Earnings & Valuation

This table compares Axsome Therapeutics and FibroBiologics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axsome Therapeutics	$561.26 million	13.28	-$287.22 million	($4.67)	-31.65
FibroBiologics	N/A	N/A	-$11.16 million	($0.48)	-0.53

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

Volatility & Risk

Axsome Therapeutics has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, FibroBiologics has a beta of -0.58, meaning that its stock price is 158% less volatile than the S&P 500.

Profitability

This table compares Axsome Therapeutics and FibroBiologics’ 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%
FibroBiologics	N/A	-1,219.18%	-146.48%

Summary

Axsome Therapeutics beats FibroBiologics on 9 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 FibroBiologics

FibroBiologics, Inc. operates as a cell therapy, regenerative medicine company. It is developing a pipeline of treatments and potential cures for chronic diseases using fibroblast cells and fibroblast-derived materials. It holds 150+ U.S. and internationally issued patents/patents pending across various clinical pathways, including disc degeneration, orthopedics, multiple sclerosis, psoriasis, wound healing, reversing organ involution, and cancer. FibroBiologics, Inc. was incorporated in 2021 and is based in Houston, Texas.