Contrasting Akebia Therapeutics (NASDAQ:AKBA) and Korro Bio (NASDAQ:KRRO)

Akebia Therapeutics (NASDAQ:AKBA – Get Free Report) and Korro Bio (NASDAQ:KRRO – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Earnings and Valuation

This table compares Akebia Therapeutics and Korro Bio”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Akebia Therapeutics $236.20 million 1.05 -$5.34 million ($0.11) -8.17
Korro Bio $6.39 million 22.72 -$117.26 million ($10.00) -0.99

Akebia Therapeutics has higher revenue and earnings than Korro Bio. Akebia Therapeutics is trading at a lower price-to-earnings ratio than Korro Bio, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Akebia Therapeutics and Korro Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akebia Therapeutics -13.54% -88.88% -7.74%
Korro Bio N/A -114.26% -68.57%

Insider & Institutional Ownership

33.9% of Akebia Therapeutics shares are owned by institutional investors. Comparatively, 13.2% of Korro Bio shares are owned by institutional investors. 4.3% of Akebia Therapeutics shares are owned by company insiders. Comparatively, 4.8% of Korro Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Akebia Therapeutics has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, Korro Bio has a beta of 3.13, suggesting that its share price is 213% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Akebia Therapeutics and Korro Bio, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akebia Therapeutics 1 2 4 0 2.43
Korro Bio 1 2 6 3 2.92

Akebia Therapeutics currently has a consensus price target of $3.90, suggesting a potential upside of 333.82%. Korro Bio has a consensus price target of $16.71, suggesting a potential upside of 69.58%. Given Akebia Therapeutics’ higher probable upside, analysts clearly believe Akebia Therapeutics is more favorable than Korro Bio.

Summary

Korro Bio beats Akebia Therapeutics on 8 of the 15 factors compared between the two stocks.

About Akebia Therapeutics

(Get Free Report)

Akebia Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for patients with kidney diseases. The company’s lead product investigational product candidate is Vafseo (vadadustat), an oral hypoxia-inducible factor prolyl hydroxylase, which is in Phase III development for the treatment of anemia due to chronic kidney disease (CKD) in dialysis-dependent and non-dialysis dependent patients. It offers Auryxia, a ferric citrate that is used to control the serum phosphorus levels in adult patients with DD-CKD on dialysis; and the treatment of iron deficiency anemia in adult patients with CKD not on dialysis. The company’s product pipeline includes AKB-9090, a drug targeting critical-care indications; and AKB-10108, a drug targeting conditions related to premature birth. It has collaboration agreements with Mitsubishi Tanabe Pharma Corporation for the development and commercialization of vadadustat in Japan and other Asian countries, as well as research and license agreement with Janssen Pharmaceutica NV for the development and commercialization of hypoxia-inducible factor prolyl hydroxylase targeted compounds worldwide. Akebia Therapeutics, Inc. was incorporated in 2007 and is headquartered in Cambridge, Massachusetts.

About Korro Bio

(Get Free Report)

Korro Bio, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of genetic medicines based on editing RNA for the treatment of rare and highly prevalent diseases primarily in the United States. Its lead product candidate is KRRO-110 which is in preclinical trials for the treatment of Alpha-1 Antitrypsin Deficiency (AATD). It uses its RNA editing platform, OPERA to generate differentiated RNA editing product candidates. The company is also developing programs for Parkinson's disease, Amyotrophic lateral sclerosis, severe alcohol-associated hepatitis, and other subsets of pain. Korro Bio, Inc. was founded in 2018 and is based in Cambridge, Massachusetts.

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