Head-To-Head Survey: Aerie Pharmaceuticals (AERI) vs. Denali Therapeutics (DNLI)

Aerie Pharmaceuticals (NASDAQ:AERI) and Denali Therapeutics (NASDAQ:DNLI) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Volatility & Risk

Aerie Pharmaceuticals has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Denali Therapeutics has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Aerie Pharmaceuticals and Denali Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerie Pharmaceuticals 1 0 10 0 2.82
Denali Therapeutics 0 1 1 0 2.50

Aerie Pharmaceuticals presently has a consensus target price of $79.18, suggesting a potential upside of 99.05%. Denali Therapeutics has a consensus target price of $25.50, suggesting a potential downside of 2.67%. Given Aerie Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Aerie Pharmaceuticals is more favorable than Denali Therapeutics.

Valuation and Earnings

This table compares Aerie Pharmaceuticals and Denali Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerie Pharmaceuticals $24.18 million 75.55 -$232.57 million ($4.65) -8.55
Denali Therapeutics $129.16 million 19.33 -$36.24 million ($0.39) -67.18

Denali Therapeutics has higher revenue and earnings than Aerie Pharmaceuticals. Denali Therapeutics is trading at a lower price-to-earnings ratio than Aerie Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

71.5% of Denali Therapeutics shares are owned by institutional investors. 10.5% of Aerie Pharmaceuticals shares are owned by company insiders. Comparatively, 21.3% of Denali Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Aerie Pharmaceuticals N/A -91.80% -63.63%
Denali Therapeutics -28.06% -7.12% -6.06%

Summary

Denali Therapeutics beats Aerie Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

Aerie Pharmaceuticals Company Profile

Aerie Pharmaceuticals, Inc., an ophthalmic pharmaceutical company, focuses on the discovery, development, and commercialization of first-in-class therapies for the treatment of glaucoma, retinal diseases, and other eye diseases. Its lead product is Rhopressa, a once-daily eye drop to reduce elevated intraocular pressure (IOP) in patients with glaucoma or ocular hypertension. The company's advanced-stage product candidate is Roclatan, a once-daily eye drop to reduce IOP to treat patients with open-angle glaucoma and ocular hypertension. Aerie Pharmaceuticals, Inc. has a collaborative research, development, and licensing agreement with DSM. Aerie Pharmaceuticals, Inc. was founded in 2005 and is headquartered in Durham, North Carolina.

Denali Therapeutics Company Profile

Denali Therapeutics Inc., a biopharmaceutical company, discovers and develops therapeutic candidates for neurodegenerative diseases in the United States. The company offers leucine-rich repeat kinase 2 (LRRK2) inhibitor product candidates, including DNL201 and DNL151, which are in Phase 1 clinical trials for Parkinson's disease. It is also developing receptor interacting serine/threonine protein kinase 1 (RIPK1) product candidates, such as DNL747, a selective and brain-penetrant small molecule RIPK1 inhibitor product candidate that is in Phase 1b clinical trial for Alzheimer's disease and amyotrophic lateral sclerosis (ALS). In addition, the company develops enzyme transport vehicle: iduronate 2-sulfatase, an enzyme replacement therapy program for MPS II, a lysosomal storage disorder; antibody transport vehicle (ATV): alpha-synuclein (aSyn) program, a protein that spreads throughout the brain in Parkinson's disease; ATV: triggering receptor expressed in myeloid cells 2, a therapeutic candidate designed to rescue microglial function in Alzheimer's disease; and ATV: Tau, a therapeutic targeting the spreading of Tau. Further, it is developing LF1, an undisclosed large molecule program to treat neurodegenerative diseases. Additionally, the company has various seed programs under the research, discovery, and preclinical stages of development. Denali Therapeutics Inc. has collaboration agreement with Takeda Pharmaceutical Company and Genentech, Inc., Sanofi, F-star Gamma Limited, F-star Biotechnologische Forschungs-Und Entwicklungsges M.B.H, F-star Biotechnology Limited, SIRION Biotech GmbH, Genzyme Corporation, Harvard University, the Michael J. Fox Foundation, and Centogene. 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 based in South San Francisco, California.

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