Denali Therapeutics (NASDAQ: DNLI) and Trevena (NASDAQ:TRVN) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Profitability

This table compares Denali Therapeutics and Trevena’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Denali Therapeutics N/A N/A N/A
Trevena N/A -150.22% -94.66%

Analyst Recommendations

This is a summary of recent ratings for Denali Therapeutics and Trevena, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Denali Therapeutics 0 1 3 0 2.75
Trevena 0 1 8 0 2.89

Denali Therapeutics presently has a consensus target price of $24.00, suggesting a potential upside of 13.10%. Trevena has a consensus target price of $7.94, suggesting a potential upside of 353.97%. Given Trevena’s stronger consensus rating and higher probable upside, analysts clearly believe Trevena is more favorable than Denali Therapeutics.

Institutional and Insider Ownership

0.1% of Denali Therapeutics shares are owned by institutional investors. Comparatively, 56.9% of Trevena shares are owned by institutional investors. 4.6% of Trevena shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Denali Therapeutics and Trevena’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Denali Therapeutics N/A N/A -$86.65 million N/A N/A
Trevena $3.75 million 29.07 -$102.99 million ($1.65) -1.06

Denali Therapeutics has higher earnings, but lower revenue than Trevena.

Summary

Trevena beats Denali Therapeutics on 6 of the 9 factors compared between the two stocks.

Denali Therapeutics Company Profile

Denali Therapeutics Inc. is a biotechnology company. The Company is focused on the discovery and development of therapies for patients with neurodegenerative disease, including Alzheimer’s disease, Parkinson’s disease, amyotrophic lateral sclerosis (ALS) and others. The Company is developing a diversified portfolio of therapeutics, based on scientific insights into the genetic causes and biological processes underlying neurodegenerative disease. The Company has selected approximately four specific pathways that are implicated as triggers or effectors of neurodegeneration, including degenogenes (genes that cause neurodegenerative disease when mutated), defective intracellular trafficking, glial dysfunction and axon degeneration. The Company’s development programs include Lysosomal Function Pathway, Glial Biology Pathway, and Cellular Homeostasis Pathway. Its product pipeline includes drug candidates such as DNL201, DNL 151, ATV:aSyn, ETV:IDS, DNL747, and ATV:TREM2.

Trevena Company Profile

Trevena Inc. is a biopharmaceutical company, which is engaged in developing various therapies. The Company is developing OLINVO, a u-receptor G protein pathway selective modulator (u-GPS) for the management of moderate-to-severe acute pain where intravenous (IV) administration is preferred. It is focused on commercializing it in the United States for use in acute care settings, such as hospitals and ambulatory surgery centers. It is also developing TRV250, a G protein biased ligand targeting the o-receptor, as a compound with a non-narcotic mechanism for the treatment of migraine. TRV250 also may have utility in a range of other central nervous system (CNS) indications. It is focused on commencing a Phase I study of TRV250 in the United Kingdom. Its ABLE product platform is a collection of biological information, in vitro assays, know-how and expertise that it uses to identify unique G protein coupled receptors (GPCR)-targeted biased ligands with various pharmaceutical properties.

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