Enanta Pharmaceuticals (NASDAQ:ENTA) versus Oruka Therapeutics (NASDAQ:ORKA) Critical Analysis

Enanta Pharmaceuticals (NASDAQ:ENTA) and Oruka Therapeutics (NASDAQ:ORKA) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Risk & Volatility

Enanta Pharmaceuticals has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Oruka Therapeutics has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.

Profitability

This table compares Enanta Pharmaceuticals and Oruka Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enanta Pharmaceuticals	-141.98%	-89.02%	-27.28%
Oruka Therapeutics	N/A	-26.26%	-24.16%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Enanta Pharmaceuticals and Oruka Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enanta Pharmaceuticals	1	0	6	0	2.71
Oruka Therapeutics	1	0	4	1	2.83

Enanta Pharmaceuticals presently has a consensus price target of $20.83, indicating a potential upside of 98.60%. Oruka Therapeutics has a consensus price target of $41.80, indicating a potential upside of 56.85%. Given Enanta Pharmaceuticals’ higher possible upside, equities analysts plainly believe Enanta Pharmaceuticals is more favorable than Oruka Therapeutics.

Earnings & Valuation

This table compares Enanta Pharmaceuticals and Oruka Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enanta Pharmaceuticals	$67.64 million	3.32	-$116.04 million	($4.32)	-2.43
Oruka Therapeutics	N/A	N/A	-$83.72 million	($2.81)	-9.48

Oruka Therapeutics has lower revenue, but higher earnings than Enanta Pharmaceuticals. Oruka Therapeutics is trading at a lower price-to-earnings ratio than Enanta Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

95.0% of Enanta Pharmaceuticals shares are owned by institutional investors. Comparatively, 56.4% of Oruka Therapeutics shares are owned by institutional investors. 13.9% of Enanta Pharmaceuticals shares are owned by company insiders. Comparatively, 24.7% of Oruka Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Oruka Therapeutics beats Enanta Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Enanta Pharmaceuticals

Enanta Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs for the treatment of viral infections and liver diseases. Its product pipeline comprises EDP-514, which is in phase 1b clinical development for the treatment of chronic infection with hepatitis B virus or HBV; EDP-938 and EDP-323, which is in phase II clinical development for the treatment of respiratory syncytial virus; EDP-235, which is in phase II clinical development for the treatment of human coronaviruses; and Glecaprevir, which is in the market for the treatment of chronic infection with hepatitis C virus or HCV. The company has a collaborative development and license agreement with Abbott Laboratories to develop, manufacture, and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir. Enanta Pharmaceuticals, Inc. was incorporated in 1995 and is headquartered in Watertown, Massachusetts.

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.