Critical Analysis: Oruka Therapeutics (ORKA) and The Competition

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

Profitability

This table compares Oruka Therapeutics and its competitors’ 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	-1,887.50%	-40.52%	-25.94%

Insider and Institutional Ownership

56.4% of Oruka Therapeutics shares are held by institutional investors. Comparatively, 44.7% of shares of all “Diagnostic substances” companies are held by institutional investors. 30.9% of Oruka Therapeutics shares are held by company insiders. Comparatively, 13.1% of shares of all “Diagnostic substances” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Oruka Therapeutics	N/A	-$5.34 million	-4.81
Oruka Therapeutics Competitors	$559.88 million	$6.13 million	-106.37

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

Analyst Recommendations

This is a summary of current recommendations for Oruka Therapeutics and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oruka Therapeutics	0	0	6	2	3.25
Oruka Therapeutics Competitors	862	808	1350	23	2.18

Oruka Therapeutics presently has a consensus target price of $43.17, suggesting a potential upside of 49.47%. As a group, “Diagnostic substances” companies have a potential upside of 38.34%. Given Oruka Therapeutics’ stronger consensus rating and higher possible upside, research analysts clearly believe Oruka Therapeutics is more favorable than its competitors.

Volatility and Risk

Oruka Therapeutics has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Oruka Therapeutics’ competitors have a beta of 1.33, indicating that their average share price is 33% more volatile than the S&P 500.

Summary

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

About Oruka Therapeutics

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.