Humacyte (NASDAQ:HUMA – Get Free Report) and Denali Therapeutics (NASDAQ:DNLI – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Humacyte and Denali Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Humacyte | 1 | 0 | 7 | 0 | 2.75 |
| Denali Therapeutics | 1 | 2 | 13 | 0 | 2.75 |
Humacyte presently has a consensus price target of $6.11, indicating a potential upside of 909.78%. Denali Therapeutics has a consensus price target of $35.92, indicating a potential upside of 47.20%. Given Humacyte’s higher probable upside, analysts clearly believe Humacyte is more favorable than Denali Therapeutics.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Humacyte | $2.04 million | 79.94 | -$40.83 million | ($0.49) | -1.23 |
| Denali Therapeutics | $330.53 million | 11.80 | -$512.54 million | ($2.84) | -8.59 |
Humacyte has higher earnings, but lower revenue than Denali Therapeutics. Denali Therapeutics is trading at a lower price-to-earnings ratio than Humacyte, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Humacyte and Denali Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Humacyte | -4,556.29% | -983.32% | -88.84% |
| Denali Therapeutics | N/A | -55.27% | -44.24% |
Risk & Volatility
Humacyte has a beta of 2.53, suggesting that its stock price is 153% more volatile than the S&P 500. Comparatively, Denali Therapeutics has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Insider and Institutional Ownership
44.7% of Humacyte shares are held by institutional investors. Comparatively, 92.9% of Denali Therapeutics shares are held by institutional investors. 3.1% of Humacyte shares are held by company insiders. Comparatively, 9.7% of Denali Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Denali Therapeutics beats Humacyte on 7 of the 13 factors compared between the two stocks.
About Humacyte
Humacyte, Inc. engages in the development and manufacture of off-the-shelf, implantable, and bioengineered human tissues for the treatment of diseases and conditions across a range of anatomic locations in multiple therapeutic areas. The company using its proprietary and scientific technology platform to engineer and manufacture human acellular vessels (HAVs) to be implanted into patient without inducing a foreign body response or leading to immune rejection. It is developing a portfolio of HAVs, which would target the vascular repair, reconstruction, and replacement market, including vascular trauma; arteriovenous access for hemodialysis; peripheral arterial disease; pediatric heart surgery; and coronary artery bypass grafting, as well as for the delivery of cellular therapy, including pancreatic islet cell transplantation to treat Type 1 diabetes. The company was founded in 2004 and is headquartered in Durham, North Carolina.
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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