Reviewing Axsome Therapeutics (NASDAQ:AXSM) & Gyre Therapeutics (NASDAQ:GYRE)

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

Volatility & Risk

Axsome Therapeutics has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Gyre Therapeutics has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Axsome Therapeutics and Gyre Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axsome Therapeutics	1	2	17	1	2.86
Gyre Therapeutics	1	1	0	0	1.50

Axsome Therapeutics presently has a consensus price target of $275.74, suggesting a potential upside of 63.79%. Given Axsome Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Axsome Therapeutics is more favorable than Gyre Therapeutics.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axsome Therapeutics	$638.50 million	13.81	-$183.17 million	($3.75)	-44.89
Gyre Therapeutics	$116.59 million	6.73	$5.03 million	($0.21)	-33.52

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Axsome Therapeutics	-24.68%	-265.55%	-28.10%
Gyre Therapeutics	-15.47%	-6.57%	-5.35%

Insider and Institutional Ownership

81.5% of Axsome Therapeutics shares are owned by institutional investors. Comparatively, 24.0% of Gyre Therapeutics shares are owned by institutional investors. 20.6% of Axsome Therapeutics shares are owned by insiders. Comparatively, 9.5% of Gyre Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Axsome Therapeutics beats Gyre Therapeutics on 8 of the 15 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 Gyre Therapeutics

Gyre Therapeutics, Inc., a biopharmaceutical company, primarily focuses on the development and commercialization of Hydronidone for the treatment of Metabolic Dysfunction Associated Steatohepatitis in the United States. Its Hydronidone is also being evaluated for the treatment of liver fibrosis across a spectrum of chronic liver diseases. In addition, it advances a product pipeline in China, including Pirfenidone, for dermatomyositis interstitial lung disease, systemic sclerosis-associated interstitial lung disease, and pneumoconiosis, as well as for diabetic kidney disease; and product candidates for acute-on-chronic liver failure, chronic obstructive pulmonary disease, and pulmonary arterial hypertension. The company was founded in 2002 and is headquartered in San Diego, California.