Financial Analysis: Denali Therapeutics (DNLI) versus Its Rivals

Denali Therapeutics (NASDAQ:DNLI) is one of 846 publicly-traded companies in the “Biotechnology” industry, but how does it contrast to its rivals? We will compare Denali Therapeutics to similar companies based on the strength of its profitability, risk, earnings, valuation, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Denali Therapeutics and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Denali Therapeutics	$3.60 million	-$512.54 million	-6.67
Denali Therapeutics Competitors	$739.64 million	$17.51 million	-9.95

Denali Therapeutics’ rivals have higher revenue and earnings than Denali Therapeutics. Denali Therapeutics is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Denali Therapeutics and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Denali Therapeutics	1	2	13	0	2.75
Denali Therapeutics Competitors	9775	15024	45317	1577	2.54

Denali Therapeutics currently has a consensus target price of $35.85, suggesting a potential upside of 89.26%. As a group, “Biotechnology” companies have a potential upside of 94.93%. Given Denali Therapeutics’ rivals higher possible upside, analysts clearly believe Denali Therapeutics has less favorable growth aspects than its rivals.

Volatility and Risk

Denali Therapeutics has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Denali Therapeutics’ rivals have a beta of 1.12, meaning that their average share price is 12% more volatile than the S&P 500.

Institutional & Insider Ownership

92.9% of Denali Therapeutics shares are held by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are held by institutional investors. 9.7% of Denali Therapeutics shares are held by company insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Denali Therapeutics and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Denali Therapeutics	N/A	-55.27%	-44.24%
Denali Therapeutics Competitors	-9,054.47%	-198.89%	-30.64%

Summary

Denali Therapeutics rivals beat Denali Therapeutics on 7 of the 13 factors compared.

About Denali Therapeutics

Denali Therapeutics Inc., a biopharmaceutical company, develops a portfolio of product candidates engineered to cross the blood-brain barrier for neurodegenerative diseases and lysosomal storage diseases in the United States. The company’s transport vehicle (TV)-enabled programs include DNL310 ETV, an IDS enzyme replacement therapy program for MPS II; TAK-594/DNL593 which is in Phase 1/II for frontotemporal dementia-granulin; DNL126 program for MPS IIIA; and DNL622 for MPS I, as well as other preclinical programs that target amyloid beta and HER2. Its brain-penetrant small molecule programs comprise BIIB122/DNL151 LRRK2 inhibitor program for Parkinson’s disease; SAR443820/DNL788 RIPK1 inhibitor program for CNS disease; DNL343 eIF2B Activator program for amyotrophic lateral sclerosis; and SAR443122/DNL758 RIPK1 inhibitor program for peripheral inflammatory diseases. It also provides early stage program include TAK-594/DNL593 program for FTD-GRN; DNL126 program for MPS IIIA, a Sanfilippo Syndrome A; DNL622 for MPS I which is Hurler syndrome; Antibody Transport Vehicle Amyloid beta program; Oligonucleotide Transport Vehicle platform, a novel class of biotherapeutics to address the root cause of diseases through modulation of gene expression; and other TV-enabled discovery programs. The company has collaboration agreements with Biogen MA Inc. and Biogen International GmbH; Genzyme Corporation; Takeda Pharmaceutical Company Limited; F-star Gamma Limited, F-star Biotechnologische Forschungs-und Entwicklungsges m.b.H, and F-star Biotechnology Limited; and Genentech, Inc. The company was formerly known as SPR Pharma Inc. and changed its name to Denali Therapeutics Inc. in March 2015. Denali Therapeutics Inc. was incorporated in 2013 and is headquartered in South San Francisco, California.