Contrasting Oruka Therapeutics (NASDAQ:ORKA) and Enanta Pharmaceuticals (NASDAQ:ENTA)

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

Profitability

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

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

Risk and Volatility

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

Institutional & Insider Ownership

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

Earnings & Valuation

This table compares Oruka Therapeutics and Enanta Pharmaceuticals”s top-line 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	-$83.72 million	($2.81)	-9.70
Enanta Pharmaceuticals	$64.81 million	3.47	-$116.04 million	($4.32)	-2.43

Oruka Therapeutics has higher earnings, but lower revenue 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Oruka Therapeutics and Enanta Pharmaceuticals, as reported by MarketBeat.

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

Oruka Therapeutics currently has a consensus target price of $41.80, indicating a potential upside of 53.39%. Enanta Pharmaceuticals has a consensus target price of $20.83, indicating a potential upside of 98.22%. Given Enanta Pharmaceuticals’ higher possible upside, analysts plainly believe Enanta Pharmaceuticals is more favorable than Oruka Therapeutics.

Summary

Oruka Therapeutics beats Enanta Pharmaceuticals on 8 of the 14 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 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.