Financial Review: Oruka Therapeutics (NASDAQ:ORKA) and Alpha Teknova (NASDAQ:TKNO)

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

Profitability

This table compares Alpha Teknova and Oruka Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Teknova	-87.17%	-35.30%	-24.52%
Oruka Therapeutics	N/A	-24.96%	-21.22%

Institutional & Insider Ownership

13.8% of Alpha Teknova shares are held by institutional investors. Comparatively, 56.4% of Oruka Therapeutics shares are held by institutional investors. 15.2% of Alpha Teknova shares are held by insiders. Comparatively, 22.7% of Oruka Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Alpha Teknova 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
Alpha Teknova	$36.68 million	11.61	-$36.78 million	($0.74)	-10.80
Oruka Therapeutics	N/A	N/A	-$5.34 million	($6.26)	-1.80

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

Risk & Volatility

Alpha Teknova has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Oruka Therapeutics has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Alpha Teknova and Oruka Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Teknova	0	1	2	0	2.67
Oruka Therapeutics	0	0	7	2	3.22

Alpha Teknova currently has a consensus price target of $8.50, indicating a potential upside of 6.38%. Oruka Therapeutics has a consensus price target of $39.86, indicating a potential upside of 253.34%. Given Oruka Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Oruka Therapeutics is more favorable than Alpha Teknova.

Summary

Oruka Therapeutics beats Alpha Teknova on 12 of the 14 factors compared between the two stocks.

About Alpha Teknova

Alpha Teknova, Inc. produces critical reagents for the research, discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics in the United States and internationally. The company offers pre-poured media plates for cell growth and cloning; liquid cell culture media and supplements for cellular expansion; and molecular biology reagents for sample manipulation, resuspension, and purification. It provides lab essentials which provides chemical formulations for use in biological research and drug discovery; and clinical solutions, a custom product used in the development and production of protein therapies, gene therapies, mRNA vaccines, and diagnostic kits. The company serves its products to life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostic franchises, as well as academic and government research institutions. Alpha Teknova, Inc. was founded in 1996 and is headquartered in Hollister, California.

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.