Iovance Biotherapeutics (NASDAQ:IOVA – Get Free Report) and Axsome Therapeutics (NASDAQ:AXSM – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Risk and Volatility
Iovance Biotherapeutics has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Axsome Therapeutics has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Iovance Biotherapeutics and Axsome Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Iovance Biotherapeutics | 1 | 6 | 5 | 0 | 2.33 |
| Axsome Therapeutics | 0 | 0 | 15 | 1 | 3.06 |
Institutional & Insider Ownership
77.0% of Iovance Biotherapeutics shares are owned by institutional investors. Comparatively, 81.5% of Axsome Therapeutics shares are owned by institutional investors. 10.3% of Iovance Biotherapeutics shares are owned by company insiders. Comparatively, 22.3% of Axsome Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Iovance Biotherapeutics and Axsome Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Iovance Biotherapeutics | $164.07 million | 4.54 | -$372.18 million | ($1.24) | -1.80 |
| Axsome Therapeutics | $385.69 million | 14.21 | -$287.22 million | ($5.77) | -19.29 |
Axsome Therapeutics has higher revenue and earnings than Iovance Biotherapeutics. Axsome Therapeutics is trading at a lower price-to-earnings ratio than Iovance Biotherapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Iovance Biotherapeutics and Axsome Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Iovance Biotherapeutics | -176.49% | -49.71% | -39.18% |
| Axsome Therapeutics | -64.39% | -272.80% | -36.69% |
Summary
Axsome Therapeutics beats Iovance Biotherapeutics on 10 of the 15 factors compared between the two stocks.
About Iovance Biotherapeutics
Iovance Biotherapeutics, Inc., a commercial-stage biotechnology company, develops and commercializes cell therapies using autologous tumor infiltrating lymphocyte for the treatment of metastatic melanoma and other solid tumor cancers in the United States. The company offers Amtagvi, a tumor-derived autologous T cell immunotherapy used to treat adult patients with unresectable or metastatic melanoma; and Proleukin, an interleukin-2 product for the treatment of patients with metastatic renal cell carcinoma. It also develops lifileucel in combination with pembrolizumab to treat frontline advanced melanoma patients; LN-145 for the treatment of non-small cell lung cancer (NSCLC) and solid tumor cancers; IOV-4001, which is in Phase 1/2 IOV-GM1-201 clinical trial, for the treatment of NSCLC; and lifileucel for gynecological cancers. The company has collaborations and licensing agreements with WuXi Advanced Therapies, Inc.; National Institutes of Health; the National Cancer Institute; H. Lee Moffitt Cancer Center; The University of Texas M.D. Anderson Cancer Center; Cellectis S.A.; Novartis Pharma AG; and Boehringer Ingelheim Biopharmaceuticals GmbH. The company was formerly known as Lion Biotechnologies, Inc. and changed its name to Iovance Biotherapeutics, Inc. in June 2017. Iovance Biotherapeutics, Inc. was incorporated in 2007 and is headquartered in San Carlos, California.
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.
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