Axsome Therapeutics (NASDAQ: AXSM) and Kite Pharma (NASDAQ:KITE) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Insider and Institutional Ownership
27.1% of Axsome Therapeutics shares are owned by institutional investors. Comparatively, 87.7% of Kite Pharma shares are owned by institutional investors. 35.2% of Axsome Therapeutics shares are owned by company insiders. Comparatively, 14.0% of Kite Pharma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and price targets for Axsome Therapeutics and Kite Pharma, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Axsome Therapeutics presently has a consensus price target of $19.50, suggesting a potential upside of 310.53%. Kite Pharma has a consensus price target of $93.20, suggesting a potential downside of 48.16%. Given Axsome Therapeutics’ stronger consensus rating and higher probable upside, equities analysts plainly believe Axsome Therapeutics is more favorable than Kite Pharma.
This table compares Axsome Therapeutics and Kite Pharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Axsome Therapeutics and Kite Pharma’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Axsome Therapeutics||N/A||N/A||-$28.75 million||($1.47)||-3.23|
|Kite Pharma||$32.14 million||319.87||-$341.06 million||($6.87)||-26.17|
Axsome Therapeutics has higher revenue, but lower earnings than Kite Pharma. Kite Pharma is trading at a lower price-to-earnings ratio than Axsome Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Axsome Therapeutics has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Kite Pharma has a beta of 2.67, suggesting that its share price is 167% more volatile than the S&P 500.
Axsome Therapeutics Company Profile
Axsome Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in developing therapies for the management of central nervous system (CNS) disorders, including pain. It operates in the business of developing novel therapies for the management of CNS disorders segment. Its product candidate, AXS-02 (disodium zoledronate tetrahydrate), is an oral, targeted, non opioid therapeutic for chronic pain. It is developing AXS 02 for the treatment of pain in over three conditions, such as complex regional pain syndrome (CRPS); knee osteoarthritis (OA) associated with bone marrow lesions (BMLs), and chronic low back pain (CLBP), associated with type I, or mixed type I and type II Modic changes (MCs). Its product candidate, AXS 05, is a fixed dose combination of dextromethorphan (DM) and bupropion. It is developing AXS 05 for the treatment of over two conditions, such as treatment resistant depression (TRD), and agitation in patients with Alzheimer’s disease (AD).
Kite Pharma Company Profile
Kite Pharma, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of cancer immunotherapy products to target and kill cancer cells. The Company offers engineered autologous cell therapy, which is an approach to the treatment of cancer. Its therapy involves modifying a patient’s T cells outside the patient’s body, or ex vivo, causing the T cells to express chimeric antigen receptors (CARs), or T cell receptors (TCRs), and then reinfusing the engineered T cells back into the patient. Its lead product candidate, KTE-C19, is a CAR-based therapy that targets the CD19 antigen, a protein expressed on the cell surface of B-cell lymphomas and leukemias. The Company is conducting a registrational Phase II clinical trial (ZUMA-1) of KTE-C19 in patients with relapsed or refractory aggressive diffuse large B cell lymphoma (DLBCL), primary mediastinal B cell lymphoma (PMBCL), or transformed follicular lymphoma (TFL).
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