Ultragenyx Pharmaceutical (NASDAQ:RARE – Get Free Report) and Denali Therapeutics (NASDAQ:DNLI – Get Free Report) are both mid-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Risk & Volatility
Ultragenyx Pharmaceutical has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, Denali Therapeutics has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Ultragenyx Pharmaceutical and Denali Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ultragenyx Pharmaceutical | 1 | 1 | 16 | 0 | 2.83 |
| Denali Therapeutics | 1 | 0 | 12 | 2 | 3.00 |
Profitability
This table compares Ultragenyx Pharmaceutical and Denali Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ultragenyx Pharmaceutical | -91.95% | -414.17% | -43.66% |
| Denali Therapeutics | N/A | -46.33% | -40.99% |
Valuation and Earnings
This table compares Ultragenyx Pharmaceutical and Denali Therapeutics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ultragenyx Pharmaceutical | $560.23 million | 4.24 | -$569.18 million | ($5.94) | -4.14 |
| Denali Therapeutics | $330.53 million | 9.43 | -$422.77 million | ($2.91) | -7.30 |
Denali Therapeutics has lower revenue, but higher earnings than Ultragenyx Pharmaceutical. Denali Therapeutics is trading at a lower price-to-earnings ratio than Ultragenyx Pharmaceutical, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
97.7% of Ultragenyx Pharmaceutical shares are owned by institutional investors. Comparatively, 92.9% of Denali Therapeutics shares are owned by institutional investors. 5.5% of Ultragenyx Pharmaceutical shares are owned by insiders. Comparatively, 12.5% of Denali Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Denali Therapeutics beats Ultragenyx Pharmaceutical on 10 of the 15 factors compared between the two stocks.
About Ultragenyx Pharmaceutical
Ultragenyx Pharmaceutical Inc., a biopharmaceutical company, focuses on the identification, acquisition, development, and commercialization of novel products for the treatment of rare and ultra-rare genetic diseases in North America, Latin America, Japan, Europe, and internationally. Its biologic products include Crysvita (burosumab), an antibody targeting fibroblast growth factor 23 for the treatment of X-linked hypophosphatemia, as well as tumor-induced osteomalacia; Mepsevii, an enzyme replacement therapy for the treatment of children and adults with Mucopolysaccharidosis VII; Dojolvi for treating long-chain fatty acid oxidation disorders; and Evkeeza (evinacumab) for the treatment of homozygous familial hypercholesterolemia. The company's products candidatures include DTX401, an adeno-associated virus 8 (AAV8) gene therapy clinical candidate for the treatment of patients with glycogen storage disease type Ia; DTX301, an AAV8 gene therapy for the treatment of patients with ornithine transcarbamylase; UX143, a human monoclonal antibody for the treatment of osteogenesis imperfecta; GTX-102, an antisense oligonucleotide for the treatment of Angelman syndrome; UX111, an AAV9 gene therapy product candidate for the treatment of patients with Sanfilippo syndrome type A, or MPS IIIA, a rare lysosomal storage disease; UX701, for the treatment of Wilson disease; and UX053 for the treatment of glycogen storage disease type III. Ultragenyx Pharmaceutical Inc. has collaboration and license agreement with Kyowa Kirin Co., Ltd.; Saint Louis University; Baylor Research Institute; REGENXBIO Inc.; Bayer Healthcare LLC; GeneTx; Mereo; University of Pennsylvania; Arcturus Therapeutics Holdings Inc.; Solid Biosciences Inc.; Regeneron; Abeona; and Daiichi Sankyo Co., Ltd. The company was incorporated in 2010 and is headquartered in Novato, California.
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.
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