Momenta Pharmaceuticals (NASDAQ:MNTA) and Denali Therapeutics (NASDAQ:DNLI) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Valuation and Earnings
This table compares Momenta Pharmaceuticals and Denali Therapeutics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Momenta Pharmaceuticals||$75.59 million||16.34||-$176.06 million||($2.03)||-6.16|
|Denali Therapeutics||$129.16 million||11.32||-$36.24 million||($0.39)||-39.10|
Denali Therapeutics has higher revenue and earnings than Momenta Pharmaceuticals. Denali Therapeutics is trading at a lower price-to-earnings ratio than Momenta Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Momenta Pharmaceuticals has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, Denali Therapeutics has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500.
Institutional and Insider Ownership
96.2% of Momenta Pharmaceuticals shares are held by institutional investors. Comparatively, 73.9% of Denali Therapeutics shares are held by institutional investors. 3.4% of Momenta Pharmaceuticals shares are held by insiders. Comparatively, 21.2% of Denali Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of recent recommendations and price targets for Momenta Pharmaceuticals and Denali Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Momenta Pharmaceuticals presently has a consensus target price of $23.63, suggesting a potential upside of 88.89%. Denali Therapeutics has a consensus target price of $27.86, suggesting a potential upside of 82.67%. Given Momenta Pharmaceuticals’ higher possible upside, equities analysts plainly believe Momenta Pharmaceuticals is more favorable than Denali Therapeutics.
This table compares Momenta Pharmaceuticals and Denali Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Denali Therapeutics beats Momenta Pharmaceuticals on 10 of the 14 factors compared between the two stocks.
Momenta Pharmaceuticals Company Profile
Momenta Pharmaceuticals, Inc., a biotechnology company, focuses on the discovery and development of novel biologic therapies for the treatment of rare immune-mediated diseases in the United States. Its novel therapeutic programs include M281, a fully-human anti-neonatal Fc receptor (FcRn), aglycosylated immunoglobulin G (IgG1), and monoclonal antibody to reduce circulating IgG antibodies by blocking endogenous IgG recycling via FcRn; M230, a recombinant trivalent human IgG1 Fc multimer containing three IgG Fc regions joined to maximize activity; and M254, a hyper-sialylated immunoglobulin to treat various inflammatory diseases, including idiopathic thrombocytopenic purpura and chronic inflammatory demyelinating polyneuropathy. The company’s biosimilar programs comprise M923, a biosimilar of HUMIRA for the treatment of patients with rheumatoid arthritis, crohn’s disease, ulcerative colitis, and psoriasis; and M710, a biosimilar of EYLEA for the treatment of neovascular age-related macular degeneration, macular edema following retinal vein occlusion, diabetic macular edema (DME), and diabetic retinopathy in patients with DME. Its complex generics programs include Enoxaparin sodium injection, a generic version of LOVENOX that is indicated for the prevention and treatment of deep vein thrombosis, as well as supports the treatment of acute coronary syndromes; GLATOPA, a generic version of once-daily COPAXONE for the treatment of patients with relapsing forms of multiple sclerosis; and GLATOPA, a generic version of three-times-weekly COPAXONE. The company has collaboration and license agreements with Sandoz AG, Mylan Ireland Limited, and CSL Behring Recombinant Facility AG. The company was formerly known as Mimeon, Inc. and changed its name to Momenta Pharmaceuticals, Inc. in September 2002. Momenta Pharmaceuticals, Inc. was founded in 2001 and is headquartered in Cambridge, Massachusetts.
Denali Therapeutics Company Profile
Denali Therapeutics Inc., a biopharmaceutical company, discovers and develops therapeutic candidates for neurodegenerative diseases in the United States. The company offers leucine-rich repeat kinase 2 (LRRK2) inhibitor product candidates, including DNL201 and DNL151, which are in Phase 1 clinical trials for Parkinson’s disease. It is also developing receptor interacting serine/threonine protein kinase 1 (RIPK1) product candidates, such as DNL747, a selective and brain-penetrant small molecule RIPK1 inhibitor product candidate that is in Phase 1b clinical trial for Alzheimer’s disease and amyotrophic lateral sclerosis (ALS). In addition, the company develops enzyme transport vehicle: iduronate 2-sulfatase, an enzyme replacement therapy program for MPS II, a lysosomal storage disorder; antibody transport vehicle (ATV): alpha-synuclein (aSyn) program, a protein that spreads throughout the brain in Parkinson’s disease; ATV: triggering receptor expressed in myeloid cells 2, a therapeutic candidate designed to rescue microglial function in Alzheimer’s disease; and ATV: Tau, a therapeutic targeting the spreading of Tau. Further, it is developing LF1, an undisclosed large molecule program to treat neurodegenerative diseases. Additionally, the company has various seed programs under the research, discovery, and preclinical stages of development. Denali Therapeutics Inc. has collaboration agreement with Takeda Pharmaceutical Company and Genentech, Inc., Sanofi, F-star Gamma Limited, F-star Biotechnologische Forschungs-Und Entwicklungsges M.B.H, F-star Biotechnology Limited, SIRION Biotech GmbH, Genzyme Corporation, Harvard University, the Michael J. Fox Foundation, and Centogene. 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 based in South San Francisco, California.