Financial Survey: Trevena (TRVN) and Denali Therapeutics (DNLI)

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

Profitability

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

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

Earnings and Valuation

This table compares Trevena and Denali Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trevena $3.75 million 28.24 -$102.99 million ($1.65) -1.03
Denali Therapeutics N/A N/A -$86.65 million N/A N/A

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

Analyst Ratings

This is a breakdown of current ratings for Trevena and Denali Therapeutics, as reported by MarketBeat.

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

Trevena presently has a consensus price target of $7.94, indicating a potential upside of 367.32%. Denali Therapeutics has a consensus price target of $24.00, indicating a potential upside of 14.67%. Given Trevena’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Trevena is more favorable than Denali Therapeutics.

Insider and Institutional Ownership

56.9% of Trevena shares are held by institutional investors. Comparatively, 0.1% of Denali Therapeutics shares are held by institutional investors. 4.6% of Trevena shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

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

About Trevena

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.

About Denali Therapeutics

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.

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