Financial Survey: Neoleukin Therapeutics (NASDAQ:NLTX) and Axsome Therapeutics (NASDAQ:AXSM)

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

Insider & Institutional Ownership

81.5% of Axsome Therapeutics shares are owned by institutional investors. Comparatively, 52.4% of Neoleukin Therapeutics shares are owned by institutional investors. 22.4% of Axsome Therapeutics shares are owned by company insiders. Comparatively, 1.6% of Neoleukin Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Axsome Therapeutics and Neoleukin Therapeutics, as reported by MarketBeat.com.

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

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axsome Therapeutics	$270.60 million	16.69	-$239.24 million	($6.53)	-14.27
Neoleukin Therapeutics	N/A	N/A	-$57.56 million	($3.11)	-12.60

Neoleukin Therapeutics has lower revenue, but higher earnings 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.

Summary

Axsome Therapeutics beats Neoleukin Therapeutics on 7 of the 13 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 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.