Critical Review: Oruka Therapeutics (ORKA) & The Competition

Oruka Therapeutics (NASDAQ:ORKA) is one of 39 public companies in the “Diagnostic substances” industry, but how does it contrast to its rivals? We will compare Oruka Therapeutics to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares Oruka Therapeutics and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oruka Therapeutics	N/A	-20.18%	-19.51%
Oruka Therapeutics Competitors	-1,869.93%	-41.44%	-26.35%

Institutional and Insider Ownership

56.4% of Oruka Therapeutics shares are owned by institutional investors. Comparatively, 44.7% of shares of all “Diagnostic substances” companies are owned by institutional investors. 22.7% of Oruka Therapeutics shares are owned by insiders. Comparatively, 12.6% of shares of all “Diagnostic substances” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Oruka Therapeutics and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Oruka Therapeutics	N/A	-$5.34 million	-4.44
Oruka Therapeutics Competitors	$557.35 million	$6.13 million	-107.13

Oruka Therapeutics’ rivals have higher revenue and earnings than Oruka Therapeutics. Oruka Therapeutics is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Oruka Therapeutics and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oruka Therapeutics	0	0	6	2	3.25
Oruka Therapeutics Competitors	869	814	1356	23	2.17

Oruka Therapeutics presently has a consensus price target of $43.17, indicating a potential upside of 61.79%. As a group, “Diagnostic substances” companies have a potential upside of 41.97%. Given Oruka Therapeutics’ stronger consensus rating and higher possible upside, research analysts clearly believe Oruka Therapeutics is more favorable than its rivals.

Volatility & Risk

Oruka Therapeutics has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Oruka Therapeutics’ rivals have a beta of 1.28, meaning that their average stock price is 28% more volatile than the S&P 500.

Summary

Oruka Therapeutics beats its rivals on 10 of the 13 factors compared.

Oruka Therapeutics Company Profile

ARCA biopharma, Inc., a biopharmaceutical company, develops genetically-targeted therapies for heart failure and cardiovascular diseases. It is positioned to bring personalized therapies for the treatment of cardiovascular disease, through the use of genetics. Complementing the Company’s cardiovascular science, ARCA’s management team has significant experience in developing and commercializing cardiovascular products. The Company’s business focus combines expertise in cardiovascular pathophysiology, molecular genetics, clinical development and product commercialization. It is currently developing Gencaro (bucindolol hydrochloride), a cardiovascular drug for the treatment of chronic heart failure. The company is based in Broomfield, Colorado.