Comparing Axsome Therapeutics (NASDAQ:AXSM) and Lipella Pharmaceuticals (NASDAQ:LIPO)

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

Analyst Ratings

This is a summary of current ratings and price targets for Axsome Therapeutics and Lipella Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axsome Therapeutics	0	0	14	0	3.00
Lipella Pharmaceuticals	0	0	1	0	3.00

Axsome Therapeutics currently has a consensus target price of $124.64, suggesting a potential upside of 50.03%. Lipella Pharmaceuticals has a consensus target price of $2.00, suggesting a potential upside of 397.64%. Given Lipella Pharmaceuticals’ higher possible upside, analysts clearly believe Lipella Pharmaceuticals is more favorable than Axsome Therapeutics.

Insider & Institutional Ownership

81.5% of Axsome Therapeutics shares are owned by institutional investors. Comparatively, 74.3% of Lipella Pharmaceuticals shares are owned by institutional investors. 22.4% of Axsome Therapeutics shares are owned by insiders. Comparatively, 39.6% of Lipella Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Axsome Therapeutics has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Lipella Pharmaceuticals has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.

Valuation and Earnings

This table compares Axsome Therapeutics and Lipella Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axsome Therapeutics	$291.49 million	13.54	-$239.24 million	($6.38)	-13.02
Lipella Pharmaceuticals	$449,617.00	6.80	-$4.62 million	N/A	N/A

Lipella Pharmaceuticals has lower revenue, but higher earnings than Axsome Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Axsome Therapeutics	-105.85%	-117.46%	-36.39%
Lipella Pharmaceuticals	-817.16%	-172.07%	-141.17%

Summary

Axsome Therapeutics beats Lipella Pharmaceuticals on 8 of the 11 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 Lipella Pharmaceuticals

Lipella Pharmaceuticals Inc., a biotechnology company, focuses on developing drugs by reformulating the active agents in existing generic drugs and optimizing these reformulations for various applications. The company develops LP-10, a formulation of tacrolimus that has completed Phase 2a clinical trial for patients with radiation-induced hemorrhagic cystitis; LP-310, a formulation of tacrolimus for the treatment of oral lichen planus; and LP-410, an oral liposomal formulation of tacrolimus for the treatment of oral graft-versus-host disease (GVHD). Lipella Pharmaceuticals Inc. was incorporated in 2005 and is headquartered in Pittsburgh, Pennsylvania.