Financial Analysis: Virax Biolabs Group (NASDAQ:VRAX) versus Oruka Therapeutics (NASDAQ:ORKA)

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

Institutional and Insider Ownership

8.6% of Virax Biolabs Group shares are owned by institutional investors. Comparatively, 56.4% of Oruka Therapeutics shares are owned by institutional investors. 45.1% of Virax Biolabs Group shares are owned by insiders. Comparatively, 22.7% of Oruka Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Virax Biolabs Group and Oruka Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virax Biolabs Group	N/A	N/A	N/A
Oruka Therapeutics	N/A	-24.96%	-21.22%

Risk and Volatility

Virax Biolabs Group has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Oruka Therapeutics has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Virax Biolabs Group and Oruka Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virax Biolabs Group	0	0	0	0	0.00
Oruka Therapeutics	0	0	7	1	3.13

Oruka Therapeutics has a consensus target price of $43.17, indicating a potential upside of 245.33%. Given Oruka Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Oruka Therapeutics is more favorable than Virax Biolabs Group.

Valuation and Earnings

This table compares Virax Biolabs Group and Oruka Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virax Biolabs Group	$160,000.00	43.20	-$6.73 million	N/A	N/A
Oruka Therapeutics	N/A	N/A	-$5.34 million	($6.26)	-2.00

Oruka Therapeutics has lower revenue, but higher earnings than Virax Biolabs Group.

Summary

Oruka Therapeutics beats Virax Biolabs Group on 6 of the 11 factors compared between the two stocks.

About Virax Biolabs Group

Virax Biolabs Group Limited, a biotechnology company, sells, distributes, and markets diagnostics test kits for the prevention, detection, diagnosis, and risk management of viral diseases in the field of immunology. The company provides rapid antibody IgC/IgM tests, antigen tests, polymerase chain reaction rapid tests, and neutralizing antibody tests under the ViraxClear brand name. It also develops T-Cell IVD test kit for COVID-19, which intend to adapt for immunological profiling against multiple viral threats under the ViraxImmune Brand, as well as a proprietary mobile application for ViraxImmune that presents an individual's immunological profiling data and provide advice on the users' immune system. It serves clinics, pharmacies, laboratories, hospitals, and other groups, as well as corporations, pharmaceutical companies, research institutions, hospital systems, and public and private institutions. The company operates in Europe, South America, the Asia Pacific, Sub-Saharan Africa, and internationally. The company was formerly known as Virax Biolabs (Cayman) Limited and changed its name to Virax Biolabs Group Limited in September 2021. Virax Biolabs Group Limited was incorporated in 2021 and is headquartered in London, the United Kingdom.

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.