Oruka Therapeutics (NASDAQ:ORKA) & OncoCyte (NASDAQ:OCX) Financial Analysis

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

Valuation and Earnings

This table compares OncoCyte and Oruka Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OncoCyte	$1.02 million	49.37	-$27.78 million	N/A	N/A
Oruka Therapeutics	N/A	N/A	-$5.34 million	($6.00)	-4.35

Oruka Therapeutics has lower revenue, but higher earnings than OncoCyte.

Analyst Recommendations

This is a breakdown of current recommendations for OncoCyte and Oruka Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OncoCyte	0	2	2	0	2.50
Oruka Therapeutics	0	0	6	2	3.25

OncoCyte currently has a consensus price target of $4.06, suggesting a potential upside of 35.42%. Oruka Therapeutics has a consensus price target of $43.17, suggesting a potential upside of 65.39%. Given Oruka Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Oruka Therapeutics is more favorable than OncoCyte.

Institutional & Insider Ownership

55.3% of OncoCyte shares are owned by institutional investors. Comparatively, 56.4% of Oruka Therapeutics shares are owned by institutional investors. 1.6% of OncoCyte shares are owned by company insiders. Comparatively, 22.7% of Oruka Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OncoCyte	-3,558.46%	-149.88%	-45.79%
Oruka Therapeutics	N/A	-20.18%	-19.51%

Risk and Volatility

OncoCyte has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Oruka Therapeutics has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Summary

Oruka Therapeutics beats OncoCyte on 10 of the 12 factors compared between the two stocks.

About OncoCyte

OncoCyte Corporation, a precision diagnostics company, focuses on development and commercialization of proprietary tests in the United States and internationally. The company is developing DetermaIO, a gene expression test that assesses the tumor microenvironment to predict response to immunotherapies; DetermaCNI, a blood-based monitoring tool for monitoring therapeutic efficacy in cancer patients; and VitaGraft, a blood-based solid organ transplantation monitoring test. It also provides testing services for biomarker discovery, assay design and development, clinical trial support, and various biomarker tests. The company has a collaboration agreement with Bio-Rad Laboratories, Inc. (Bio-Rad) to collaborate in the development and the commercialization of research use only and in vitro diagnostics kitted transplant products using Bio-Rad's ddPCR instruments and reagents. OncoCyte Corporation was incorporated in 2009 and is based in Irvine, California.

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.