Denali Therapeutics (NASDAQ:DNLI – Get Free Report) and Omega Therapeutics (NASDAQ:OMGA – Get Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Profitability
This table compares Denali Therapeutics and Omega Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Denali Therapeutics | N/A | -32.94% | -30.04% |
| Omega Therapeutics | -902.93% | -213.13% | -41.24% |
Insider and Institutional Ownership
92.9% of Denali Therapeutics shares are held by institutional investors. Comparatively, 97.5% of Omega Therapeutics shares are held by institutional investors. 7.9% of Denali Therapeutics shares are held by insiders. Comparatively, 8.5% of Omega Therapeutics shares are held by 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Denali Therapeutics | 0 | 2 | 9 | 0 | 2.82 |
| Omega Therapeutics | 0 | 1 | 4 | 0 | 2.80 |
Denali Therapeutics presently has a consensus price target of $40.40, suggesting a potential upside of 88.52%. Omega Therapeutics has a consensus price target of $9.20, suggesting a potential upside of 1,008.43%. Given Omega Therapeutics’ higher possible upside, analysts plainly believe Omega Therapeutics is more favorable than Denali Therapeutics.
Risk and Volatility
Denali Therapeutics has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Omega Therapeutics has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.
Earnings and Valuation
This table compares Denali Therapeutics and Omega Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Denali Therapeutics | $330.53 million | 9.33 | -$145.22 million | ($2.76) | -7.76 |
| Omega Therapeutics | $8.10 million | 5.68 | -$97.43 million | ($1.33) | -0.62 |
Omega Therapeutics has lower revenue, but higher earnings than Denali Therapeutics. Denali Therapeutics is trading at a lower price-to-earnings ratio than Omega Therapeutics, indicating that it is currently the more affordable of 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 Omega Therapeutics
Omega Therapeutics, Inc. operates as a clinical-stage biotechnology company. The company's OMEGA platform enables control of fundamental epigenetic processes to correct the root cause of disease by restoring aberrant gene expression to a range without altering native nucleic acid sequences. It also develops OTX-2002 for hepatocellular carcinoma; OTX-2101 for non-small cell lung cancer; omega epigenomic controllers (OEC) for inflammatory lung diseases, such as neutrophilic asthma, acute respiratory distress syndrome, dermatological, oncology, and rheumatological indications; OEC candidates for idiopathic pulmonary fibrosis; liver regeneration medicines; and OEC candidates for patients with diabetes and other conditions to treat corneal epithelial injury. In addition, the company develops OEC candidates for the treatment of alopecia, a disorder characterized by patches of non-scarring hair loss affecting the scalp and body. Omega Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.
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