Critical Survey: Achieve Life Sciences (NASDAQ:ACHV) versus Oruka Therapeutics (NASDAQ:ORKA)

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

Volatility & Risk

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oruka Therapeutics	N/A	N/A	-$5.34 million	($5.79)	-2.06
Achieve Life Sciences	N/A	N/A	-$29.82 million	($1.23)	-2.36

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.

Analyst Ratings

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

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

Oruka Therapeutics presently has a consensus target price of $39.86, indicating a potential upside of 233.53%. Achieve Life Sciences has a consensus target price of $15.75, indicating a potential upside of 443.10%. Given Achieve Life Sciences’ stronger consensus rating and higher possible upside, analysts plainly believe Achieve Life Sciences is more favorable than Oruka Therapeutics.

Insider and Institutional Ownership

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

Profitability

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

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

Summary

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

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.

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.