Denali Therapeutics (NASDAQ:DNLI) versus PureTech Health (NASDAQ:PRTC) Critical Comparison

Denali Therapeutics (NASDAQ:DNLI) and PureTech Health (NASDAQ:PRTC) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Earnings & Valuation

This table compares Denali Therapeutics and PureTech Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Denali Therapeutics	$330.53 million	6.73	-$422.77 million	($2.80)	-5.43
PureTech Health	$4.83 million	89.81	$27.78 million	N/A	N/A

PureTech Health has lower revenue, but higher earnings than Denali Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Denali Therapeutics	N/A	-40.79%	-36.39%
PureTech Health	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Denali Therapeutics and PureTech Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Denali Therapeutics	1	0	13	3	3.06
PureTech Health	1	0	0	0	1.00

Denali Therapeutics currently has a consensus target price of $33.50, suggesting a potential upside of 120.25%. Given Denali Therapeutics’ stronger consensus rating and higher probable upside, research analysts plainly believe Denali Therapeutics is more favorable than PureTech Health.

Risk & Volatility

Denali Therapeutics has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, PureTech Health has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Insider & Institutional Ownership

92.9% of Denali Therapeutics shares are held by institutional investors. Comparatively, 0.0% of PureTech Health shares are held by institutional investors. 12.5% of Denali Therapeutics shares are held by company insiders. Comparatively, 5.3% of PureTech Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Denali Therapeutics beats PureTech Health on 8 of the 12 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 PureTech Health

PureTech Health plc, engages in the development and commercialization of biotechnology and pharmaceutical solutions in the United States. The company is developing LYT-100, which is under Phase 2 stage, to treat idiopathic pulmonary fibrosis (IPF); and LYT-200, a IgG4 monoclonal antibody, currently under Phase 1/2 stage, targeting galectin-9 for treating solid tumors and hematological malignancies. It also develops SPT-300, an oral drug of allopregnanolone for the treatment of anxious depression; SPT-320, a novel prodrug of agomelatine for the treatment of generalized anxiety disorder; and SPT-348, a prodrug of a non-hallucinogenic neuroplastogen for the treatment of mood and other neuropsychiatric disorders. In addition, the company is developing hydrogels to enable the oral administration of peptide therapeutics in preclinical development. The company was incorporated in 2015 and is headquartered in Boston, Massachusetts.