Oruka Therapeutics (NASDAQ:ORKA) vs. Achieve Life Sciences (NASDAQ:ACHV) Critical Analysis

Achieve Life Sciences (NASDAQ:ACHV) and Oruka Therapeutics (NASDAQ:ORKA) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Achieve Life Sciences and Oruka Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Achieve Life Sciences	0	0	3	2	3.40
Oruka Therapeutics	0	0	7	2	3.22

Achieve Life Sciences presently has a consensus target price of $15.75, suggesting a potential upside of 450.70%. Oruka Therapeutics has a consensus target price of $39.86, suggesting a potential upside of 232.42%. Given Achieve Life Sciences’ stronger consensus rating and higher probable upside, research analysts clearly believe Achieve Life Sciences is more favorable than Oruka Therapeutics.

Insider & Institutional Ownership

33.5% of Achieve Life Sciences shares are held by institutional investors. Comparatively, 56.4% of Oruka Therapeutics shares are held by institutional investors. 2.0% of Achieve Life Sciences shares are held by company insiders. Comparatively, 22.7% of Oruka Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Achieve Life Sciences and Oruka Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Achieve Life Sciences	N/A	N/A	-$29.82 million	($1.23)	-2.33
Oruka Therapeutics	N/A	N/A	-$5.34 million	($5.79)	-2.07

Achieve Life Sciences is trading at a lower price-to-earnings ratio than Oruka Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Achieve Life Sciences and Oruka Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Achieve Life Sciences	N/A	-108.30%	-65.20%
Oruka Therapeutics	N/A	-24.96%	-21.22%

Risk & Volatility

Achieve Life Sciences has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Oruka Therapeutics has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Summary

Oruka Therapeutics beats Achieve Life Sciences on 7 of the 11 factors compared between the two stocks.

About Achieve Life Sciences

Achieve Life Sciences, Inc., a clinical-stage pharmaceutical company, develops and commercializes cytisinicline for smoking cessation and nicotine addiction. The company offers cytisinicline, a plant-based alkaloid that interacts with nicotine receptors in the brain that reduce the severity of nicotine withdrawal symptoms. It has license and supply agreement with Sopharma AD and University of Bristol Achieve Life Sciences, Inc. is based in Vancouver, Canada.

About Oruka Therapeutics

Oruka Therapeutics, Inc. is a biotechnology company, which focuses on developing novel monoclonal antibody therapeutics for PsO and other I&I indications. Its pipeline includes ORKA-001 and ORKA-002. The company is headquartered in Menlo Park, CA.