Denali Therapeutics (NASDAQ:DNLI – Get Free Report) and Scilex (NASDAQ:SCLX – Get Free Report) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.
Valuation and Earnings
This table compares Denali Therapeutics and Scilex’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Denali Therapeutics | $330.53 million | 10.40 | -$145.22 million | ($0.96) | -25.10 |
Scilex | $46.74 million | 6.53 | -$114.33 million | ($1.31) | -1.28 |
Scilex has lower revenue, but higher earnings than Denali Therapeutics. Denali Therapeutics is trading at a lower price-to-earnings ratio than Scilex, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Analyst Ratings
This is a breakdown of current ratings and price targets for Denali Therapeutics and Scilex, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Denali Therapeutics | 0 | 1 | 8 | 0 | 2.89 |
Scilex | 0 | 0 | 3 | 0 | 3.00 |
Denali Therapeutics presently has a consensus target price of $40.33, indicating a potential upside of 67.36%. Scilex has a consensus target price of $8.00, indicating a potential upside of 376.19%. Given Scilex’s stronger consensus rating and higher probable upside, analysts plainly believe Scilex is more favorable than Denali Therapeutics.
Profitability
This table compares Denali Therapeutics and Scilex’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Denali Therapeutics | N/A | -11.46% | -10.40% |
Scilex | -229.47% | N/A | -106.29% |
Insider & Institutional Ownership
92.9% of Denali Therapeutics shares are held by institutional investors. Comparatively, 69.7% of Scilex shares are held by institutional investors. 7.9% of Denali Therapeutics shares are held by insiders. Comparatively, 8.7% of Scilex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Denali Therapeutics beats Scilex on 8 of the 14 factors compared between the two stocks.
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.
About Scilex
Scilex Holding Company focuses on acquiring, developing, and commercializing non-opioid pain management products for the treatment of acute and chronic pain. Its commercial products include ZTlido (lidocaine topical system) 1.8% (ZTlido), a prescription lidocaine topical product for the relief of neuropathic pain associated with postherpetic neuralgia (PHN), which is a form of post-shingles nerve pain; ELYXYB, a ready-to-use oral solution for the acute treatment of migraine with or without aura in adults; and GLOPERBA, a liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. The company is also developing three product candidates, including SP-102 (10 mg dexamethasone sodium phosphate viscous gel) (SEMDEXA), a novel viscous gel formulation of a used corticosteroid for epidural injections, which has completed a Phase 3 study to treat lumbosacral radicular pain or sciatica; SP-103 (lidocaine topical system) 5.4% (SP-103), a formulation of ZTlido for the treatment of chronic neck pain and low back pain (LBP) that has completed a Phase 2 trial; and SP-104 (4.5 mg low-dose naltrexone hydrochloride delayed-release capsules) (SP-104), a novel low-dose delayed-release naltrexone hydrochloride, which has completed Phase 1 trials for the treatment of fibromyalgia. The company is headquartered in Palo Alto, California.
Receive News & Ratings for Denali Therapeutics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Denali Therapeutics and related companies with MarketBeat.com's FREE daily email newsletter.