Denali Therapeutics (NASDAQ:DNLI) and bluebird bio (NASDAQ:BLUE) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.
Risk and Volatility
Denali Therapeutics has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500. Comparatively, bluebird bio has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500.
Profitability
This table compares Denali Therapeutics and bluebird bio's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Denali Therapeutics | -968.59% | -39.19% | -30.71% |
bluebird bio | -256.84% | -45.78% | -35.14% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Denali Therapeutics and bluebird bio, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Denali Therapeutics | 0 | 1 | 9 | 0 | 2.90 |
bluebird bio | 0 | 13 | 4 | 0 | 2.24 |
Denali Therapeutics currently has a consensus price target of $65.1111, suggesting a potential upside of 14.98%. bluebird bio has a consensus price target of $68.4667, suggesting a potential upside of 142.36%. Given bluebird bio's higher possible upside, analysts plainly believe bluebird bio is more favorable than Denali Therapeutics.
Valuation & Earnings
This table compares Denali Therapeutics and bluebird bio's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Denali Therapeutics | $26.68 million | 256.80 | $-197,610,000.00 | ($2.07) | -27.36 |
bluebird bio | $44.67 million | 42.46 | $-789,610,000.00 | ($14.31) | -1.97 |
Denali Therapeutics has higher earnings, but lower revenue than bluebird bio. Denali Therapeutics is trading at a lower price-to-earnings ratio than bluebird bio, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
68.2% of Denali Therapeutics shares are held by institutional investors. Comparatively, 94.3% of bluebird bio shares are held by institutional investors. 19.3% of Denali Therapeutics shares are held by company insiders. Comparatively, 3.6% of bluebird bio shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Denali Therapeutics beats bluebird bio on 9 of the 14 factors compared between the two stocks.