Which Is a Better Investment, ADMA Biologics Inc or Axsome Therapeutics Inc Stock? (2024)

Sifting through countless of stocks in the Pharmaceuticals industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in ADMA Biologics Inc or Axsome Therapeutics Inc because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how ADMA Biologics Inc and Axsome Therapeutics Inc compare based on key financial metrics to determine which better meets your investment needs.

ADMA Biologics, Inc. is an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty biologics for the treatment of immunodeficient patients at risk for infection and others at risk for certain infectious diseases. The Company manufactures and markets three United States Food and Drug Administration (FDA)-approved plasma-derived biologics for the treatment of immune deficiencies and the prevention of certain infectious diseases: BIVIGAM (immune globulin intravenous, human) for the treatment of primary humoral immunodeficiency (PI); ASCENIV (immune globulin intravenous, human - slra 10% liquid) for the treatment of PI, and NABI-HB (hepatitis B immune globulin, human) to provide enhanced immunity against the hepatitis B virus. Through its ADMA BioCenters subsidiary, the Company also operates as an FDA-approved source plasma collector in the United States, which provides its blood plasma for the manufacture of its products.

Axsome Therapeutics, Inc. is a commercial-stage biopharmaceutical company. The Company is engaged in developing and delivering therapies for central nervous system (CNS), conditions that have limited treatment options. The Company's two commercial products and development programs are Auvelity and Sunosi. Auvelity (dextromethorphan-bupropion) is an oral, N-methyl-D-aspartate (NMDA) receptor antagonist with multimodal activity indicated for the treatment of major depressive disorder (MDD). Sunosi (solriamfetol) is an oral medication indicated for the treatment of excessive daytime sleepiness (EDS), in patients with narcolepsy or obstructive sleep apnea. AXS-05 is an oral, investigational NMDA receptor antagonist with multimodal activity under development for the treatment of Alzheimer's disease agitation (AD agitation) and smoking cessation. AXS-07 is an oral, rapidly absorbed, multi-mechanistic, investigational medicine under development for the acute treatment of migraine.

As of May 17, 2024, ADMA Biologics Inc had a $2.1 billion market capitalization, compared to the Pharmaceuticals median of $116.9 million. ADMA Biologics Inc’s stock is NA in 2024, NA in the previous five trading days and up 124.09% in the past year.

Currently, ADMA Biologics Inc does not have a price-earnings ratio. ADMA Biologics Inc’s trailing 12-month revenue is $283.2 million with a -1.3% net profit margin. Year-over-year quarterly sales growth most recently was 43.9%. Analysts expect adjusted earnings to reach $0.352 per share for the current fiscal year. ADMA Biologics Inc does not currently pay a dividend.

Currently, Axsome Therapeutics Inc does not have a price-earnings ratio. Axsome Therapeutics Inc’s trailing 12-month revenue is $251.0 million with a -118.1% net profit margin. Year-over-year quarterly sales growth most recently was -20.7%. Analysts expect adjusted earnings to reach $-4.830 per share for the current fiscal year. Axsome Therapeutics Inc does not currently pay a dividend.

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at ADMA Biologics Inc and Axsome Therapeutics Inc’s stock grades to see how they measure up against one another.

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The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

ADMA Biologics Inc has a Growth Score of 62, which is Strong. Axsome Therapeutics Inc has a Growth Score of 14, which is Very Weak.

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

ADMA Biologics Inc has a Quality Score of 46, which is Average. Axsome Therapeutics Inc has a Quality Score of 23, which is Weak.

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

ADMA Biologics Inc has a Momentum Score of 95, which is Very Strong. Axsome Therapeutics Inc has a Momentum Score of 42, which is Average.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether ADMA Biologics Inc and Axsome Therapeutics Inc pass any of our 60+ stock screens that have outperformed the market since their creation.

Overall, ADMA Biologics Inc stock has a Growth Score of 62, Momentum Score of 95 and Quality Score of 46.

Axsome Therapeutics Inc stock has a Growth Score of 14, Momentum Score of 42 and Quality Score of 23.

Comparing ADMA Biologics Inc and Axsome Therapeutics Inc’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.