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AXSM vs MRK

AXSM
Axsome Therapeutics, Inc.
BEARISH
Price
$185.96
Market Cap
$9.37B
Sector
Healthcare
AI Confidence
68%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
AXSM
--
MRK
16.66
Forward P/E
AXSM
423.03
MRK
12.42
P/B Ratio
AXSM
126.85
MRK
5.7
P/S Ratio
AXSM
16.7
MRK
4.61
EV/EBITDA
AXSM
-49.31
MRK
11.46

Profitability

Gross Margin
AXSM
91.86%
MRK
77.21%
Operating Margin
AXSM
-19.25%
MRK
32.77%
Profit Margin
AXSM
-40.89%
MRK
28.08%
ROE
AXSM
-275.5%
MRK
36.88%
ROA
AXSM
-19.79%
MRK
12.04%

Growth

Revenue Growth
AXSM
63.2%
MRK
5.0%
Earnings Growth
AXSM
--
MRK
-19.3%

Financial Health

Debt/Equity
AXSM
2.96
MRK
0.96
Current Ratio
AXSM
1.57
MRK
1.54
Quick Ratio
AXSM
1.45
MRK
0.96

Dividends

Dividend Yield
AXSM
--
MRK
2.83%
Payout Ratio
AXSM
0.0%
MRK
45.05%

AI Verdict

AXSM BEARISH

The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of just 3/9, indicating significant operational and profitability concerns. Despite strong revenue growth of 63.2% and a bullish analyst recommendation, the company is deeply unprofitable with a -40.89% profit margin, negative ROE of -275.50%, and a high debt/equity ratio of 2.96. Valuation metrics are stretched, with a forward P/E of 423x and a price-to-book of 126.85, while insider selling of $85.54M in the last six months signals strong bearish sentiment from management. Although the stock has delivered impressive price performance over the past year (+79%), these gains appear disconnected from fundamentals, increasing vulnerability to downside correction.

Strengths
Exceptional year-over-year revenue growth of 63.20%, significantly above sector average of 39.78%
High gross margin of 91.86%, indicating strong pricing power and low cost of goods sold
Analyst consensus is strong_buy with a target price of $210.19, implying 13% upside
Risks
Piotroski F-Score of 3/9 indicates weak financial health and poor profitability trends
Extremely high forward P/E of 423x with no Graham Number, suggesting severe overvaluation relative to earnings
Negative ROE of -275.50% and negative operating margins signal deep profitability issues
MRK NEUTRAL

MRK shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.1% margin)
Strong ROE of 36.9%
Risks
Premium vs Graham Number ($59.01)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

AXSM vs MRK: Head-to-Head Comparison

This page compares Axsome Therapeutics, Inc. (AXSM) and Merck & Co., Inc. (MRK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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