Critical Survey: Day One Biopharmaceuticals (NASDAQ:DAWN) vs. Annexon (NASDAQ:ANNX)

Annexon (NASDAQ:ANNX) and Day One Biopharmaceuticals (NASDAQ:DAWN) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Risk & Volatility

Annexon has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Day One Biopharmaceuticals has a beta of -1.46, meaning that its share price is 246% less volatile than the S&P 500.

Valuation & Earnings

This table compares Annexon and Day One Biopharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Annexon	N/A	N/A	-$134.24 million	($1.05)	-3.93
Day One Biopharmaceuticals	N/A	N/A	-$188.92 million	($1.03)	-11.85

Day One Biopharmaceuticals is trading at a lower price-to-earnings ratio than Annexon, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

88.0% of Day One Biopharmaceuticals shares are owned by institutional investors. 12.7% of Annexon shares are owned by insiders. Comparatively, 8.4% of Day One Biopharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Annexon and Day One Biopharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Annexon	0	0	6	0	3.00
Day One Biopharmaceuticals	0	1	7	1	3.00

Annexon presently has a consensus target price of $15.80, indicating a potential upside of 282.57%. Day One Biopharmaceuticals has a consensus target price of $35.86, indicating a potential upside of 193.67%. Given Annexon’s higher possible upside, equities research analysts clearly believe Annexon is more favorable than Day One Biopharmaceuticals.

Profitability

This table compares Annexon and Day One Biopharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Annexon	N/A	-38.99%	-33.90%
Day One Biopharmaceuticals	N/A	-22.40%	-19.79%

Summary

Day One Biopharmaceuticals beats Annexon on 6 of the 11 factors compared between the two stocks.

About Annexon

Annexon, Inc., a clinical-stage biopharmaceutical company, discovers and develops medicines for treating inflammatory-related diseases. Its lead candidate is ANX005, an investigational full-length monoclonal antibody, which is in Phase 3 clinical trial for the treatment of patients with guillain-barré syndrome; completed Phase II clinical trial for treating Huntington's disease; and in Phase II clinical trial for the treatment of amyotrophic lateral sclerosis. The company is also developing ANX007, an antigen-binding fragment (Fab) that is in Phase 3 program for the treatment of patients with geographic atrophy; and ANX1502, a novel oral small molecule inhibitor, which is in Phase 1 clinical trials for autoimmune indications. In addition, it develops ANX009, a C1q-blocking Fab that is in Phase I clinical trial for treating patients with lupus nephritis. The company was incorporated in 2011 and is headquartered in Brisbane, California.

About Day One Biopharmaceuticals

Day One Biopharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops and commercializes targeted therapies for patients with genomically defined cancers. Its lead product candidate is tovorafenib, an oral brain-penetrant type II pan-rapidly accelerated fibrosarcoma kinase inhibitor that is in Phase II clinical trial for pediatric patients with relapsed/ refractory low-grade glioma. The company is also developing Pimasertib, an oral small molecule inhibitor of mitogen-activated protein kinase kinases 1 and 2. Day One Biopharmaceuticals, Inc. was incorporated in 2018 and is headquartered in Brisbane, California.