IDEXX Laboratories (NASDAQ:IDXX) and Oruka Therapeutics (NASDAQ:ORKA) Critical Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IDEXX Laboratories	22.34%	57.03%	25.79%
Oruka Therapeutics	N/A	-20.18%	-19.51%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDEXX Laboratories	$3.78 billion	10.39	$845.04 million	$10.33	46.11
Oruka Therapeutics	N/A	N/A	-$5.34 million	($6.00)	-4.34

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

Risk & Volatility

IDEXX Laboratories has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Oruka Therapeutics has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Insider and Institutional Ownership

87.8% of IDEXX Laboratories shares are owned by institutional investors. Comparatively, 56.4% of Oruka Therapeutics shares are owned by institutional investors. 2.1% of IDEXX Laboratories shares are owned by company insiders. Comparatively, 30.9% of Oruka Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for IDEXX Laboratories and Oruka Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDEXX Laboratories	0	2	7	0	2.78
Oruka Therapeutics	0	0	6	2	3.25

IDEXX Laboratories presently has a consensus target price of $574.13, suggesting a potential upside of 20.55%. Oruka Therapeutics has a consensus target price of $43.17, suggesting a potential upside of 65.77%. Given Oruka Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Oruka Therapeutics is more favorable than IDEXX Laboratories.

Summary

IDEXX Laboratories beats Oruka Therapeutics on 10 of the 14 factors compared between the two stocks.

About IDEXX Laboratories

IDEXX Laboratories, Inc. develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets in Africa, the Asia Pacific, Canada, Europe, Latin America, and internationally. The company operates through three segments: Companion Animal Group; Water Quality Products; and Livestock, Poultry and Dairy. It also provides point-of-care veterinary diagnostic products, including instruments, consumables, and rapid assay test kits; veterinary reference laboratory diagnostic and consulting services; practice management and diagnostic imaging systems and services for veterinarians; and health monitoring, biological materials testing, and laboratory diagnostic instruments, and services for biomedical research community. In addition, the company offers diagnostic and health-monitoring products for livestock, poultry, and dairy; products that test water for various microbiological contaminants; point-of-care electrolytes and blood gas analyzers; in-clinic chemistry, blood and urine chemistry, hematology, immunoassay, urinalysis, and coagulation analyzers; and SNAP rapid assays test kits. Further, it provides Colilert, Colilert-18, and Colisure tests, which detect the presence of total coliforms and E. coli in water; Enterolert, Pseudalert, Filta-Max and Filta-Max xpress, Legiolert, and Quanti-Tray products; and veterinary software and services for independent veterinary clinics and corporate groups. Additionally, the company offers human medical point-of-care products and laboratory diagnostics services. The company markets its products through marketing, customer service, sales, and technical service groups, as well as through independent distributors and other resellers. IDEXX Laboratories, Inc. was incorporated in 1983 and is headquartered in Westbrook, Maine.

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.