Novavax (NASDAQ:NVAX) and Denali Therapeutics (NASDAQ:DNLI) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.
Profitability
This table compares Novavax and Denali Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Novavax | -133.10% | -1,346.17% | -45.85% |
| Denali Therapeutics | -968.59% | -39.19% | -30.71% |
Analyst Recommendations
This is a breakdown of current ratings for Novavax and Denali Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Novavax | 1 | 0 | 6 | 0 | 2.71 |
| Denali Therapeutics | 0 | 1 | 9 | 0 | 2.90 |
Novavax currently has a consensus target price of $213.9286, suggesting a potential upside of 22.36%. Denali Therapeutics has a consensus target price of $65.1111, suggesting a potential upside of 6.67%. Given Novavax's higher probable upside, equities research analysts clearly believe Novavax is more favorable than Denali Therapeutics.
Insider & Institutional Ownership
49.9% of Novavax shares are held by institutional investors. Comparatively, 68.2% of Denali Therapeutics shares are held by institutional investors. 3.3% of Novavax shares are held by company insiders. Comparatively, 19.3% of Denali Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Novavax has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Denali Therapeutics has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.
Earnings & Valuation
This table compares Novavax and Denali Therapeutics' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Novavax | $18.66 million | 596.48 | $-132,690,000.00 | ($5.80) | -30.14 |
| Denali Therapeutics | $26.68 million | 276.79 | $-197,610,000.00 | ($2.07) | -29.49 |
Novavax has higher earnings, but lower revenue than Denali Therapeutics. Novavax is trading at a lower price-to-earnings ratio than Denali Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Denali Therapeutics beats Novavax on 9 of the 14 factors compared between the two stocks.
