Axsome Therapeutics Inc (AXSM)vsMerck & Company Inc (MRK)
AXSM
Axsome Therapeutics Inc
$207.75
+12.94%
HEALTHCARE · Cap: $9.46B
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 10082% more annual revenue ($65.01B vs $638.50M). MRK leads profitability with a 28.1% profit margin vs -28.7%. MRK earns a higher WallStSmart Score of 59/100 (C).
AXSM
Avoid30
out of 100
Grade: F
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+51.5%
Fair Value
$383.96
Current Price
$207.75
$176.21 discount
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 65.0% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
0.0% earnings growth
Trading at 119.4x book value
ROE of -252.1% — below average capital efficiency
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : AXSM
The strongest argument for AXSM centers on Revenue Growth. Revenue growth of 65.0% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bear Case : AXSM
The primary concerns for AXSM are EPS Growth, Price/Book, Return on Equity. Debt-to-equity of 2.96 is elevated, increasing financial risk.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
AXSM profiles as a hypergrowth stock while MRK is a value play — different risk/reward profiles.
AXSM carries more volatility with a beta of 0.47 — expect wider price swings.
AXSM is growing revenue faster at 65.0% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (59/100 vs 30/100), backed by strong 28.1% margins. AXSM offers better value entry with a 51.5% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Axsome Therapeutics Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Axsome Therapeutics, Inc., a biopharmaceutical company, is dedicated to developing new therapies for central nervous system (CNS) disorders in the United States. The company is headquartered in New York, New York.
Visit Website →Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
Visit Website →Compare with Other BIOTECHNOLOGY Stocks
Want to dig deeper into these stocks?