Critical Review: Oruka Therapeutics (NASDAQ:ORKA) versus BG Medicine (OTCMKTS:BGMD)

Oruka Therapeutics (NASDAQ:ORKA) and BG Medicine (OTCMKTS:BGMD) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Oruka Therapeutics and BG Medicine, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oruka Therapeutics	0	0	7	1	3.13
BG Medicine	0	0	0	0	0.00

Oruka Therapeutics presently has a consensus target price of $43.17, suggesting a potential upside of 104.29%. Given Oruka Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Oruka Therapeutics is more favorable than BG Medicine.

Profitability

This table compares Oruka Therapeutics and BG Medicine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oruka Therapeutics	N/A	-24.96%	-21.22%
BG Medicine	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oruka Therapeutics	N/A	N/A	-$5.34 million	($6.26)	-3.38
BG Medicine	N/A	N/A	N/A	N/A	N/A

Insider & Institutional Ownership

56.4% of Oruka Therapeutics shares are held by institutional investors. 22.7% of Oruka Therapeutics shares are held by company insiders. Comparatively, 6.5% of BG Medicine shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Oruka Therapeutics has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, BG Medicine has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Summary

Oruka Therapeutics beats BG Medicine on 7 of the 9 factors compared between the two stocks.

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.

About BG Medicine

BG Medicine, Inc. engages in the development and commercialization of diagnostic products used to guide the patients suffering from heart failure and related disorders in the United States. The company offers BGM Galectin-3 Test, an in vitro diagnostic device that measures galectin-3 in serum or plasma by enzyme linked immunosorbent assay on a microtiter plate platform; and CardioSCORE Test, a multi-analyte biomarker-based blood test used for the assessment of near-term risk of atherothrombotic cardiovascular events, such as heart attack and ischemic stroke. It has license, development, and commercialization agreements with Abbott Laboratories, bioMérieux SA, Siemens Healthcare Diagnostics Inc., and Alere Inc. for the automated instrument versions of galectin-3 test; and a strategic collaboration with Abbott Laboratories to develop and commercialize galectin-3 assay kits, and related control kits and calibrators. The company was formerly known as Beyond Genomics, Inc. and changed its name to BG Medicine, Inc. in October 2004. BG Medicine, Inc. was founded in 2000 and is headquartered in Waltham, Massachusetts.