Akebia Therapeutics (NASDAQ:AKBA) vs. Rani Therapeutics (NASDAQ:RANI) Critical Analysis

Rani Therapeutics (NASDAQ:RANIGet Free Report) and Akebia Therapeutics (NASDAQ:AKBAGet Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Insider & Institutional Ownership

30.2% of Rani Therapeutics shares are held by institutional investors. Comparatively, 33.9% of Akebia Therapeutics shares are held by institutional investors. 53.3% of Rani Therapeutics shares are held by insiders. Comparatively, 4.1% of Akebia Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Rani Therapeutics and Akebia Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rani Therapeutics $2.72 million 29.91 -$33.97 million ($1.06) -1.34
Akebia Therapeutics $169.88 million 2.38 -$51.92 million ($0.23) -8.04

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Rani Therapeutics and Akebia Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rani Therapeutics 0 0 6 1 3.14
Akebia Therapeutics 0 0 1 0 3.00

Rani Therapeutics currently has a consensus price target of $11.71, suggesting a potential upside of 724.95%. Akebia Therapeutics has a consensus price target of $7.50, suggesting a potential upside of 305.41%. Given Rani Therapeutics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Rani Therapeutics is more favorable than Akebia Therapeutics.

Risk & Volatility

Rani Therapeutics has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500. Comparatively, Akebia Therapeutics has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares Rani Therapeutics and Akebia Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rani Therapeutics N/A -219.64% -56.71%
Akebia Therapeutics -27.07% N/A -20.57%

Summary

Rani Therapeutics beats Akebia Therapeutics on 9 of the 15 factors compared between the two stocks.

About Rani Therapeutics

(Get Free Report)

Rani Therapeutics Holdings, Inc. operates as a clinical stage biotherapeutics company that develops orally administered biologics for patients, physicians, and healthcare systems in the United States. The company develops the RaniPill capsule, a drug-agnostic oral delivery platform to deliver a variety of drug substances, including oligonucleotides, peptides, proteins, and antibodies. Its product pipeline includes RT-102, a parathyroid hormone that is in Phase I clinical trial for the treatment of osteoporosis; RT-105, an anti-TNF-alpha antibody that is in preclinical studies to treat psoriatic arthritis; RT-110, a parathyroid hormone for the treatment of hypoparathyroidism; and RT-111, an ustekinumab biosimilar for the treatment of various inflammatory conditions. Rani Therapeutics Holdings, Inc. was founded in 2012 and is headquartered in San Jose, California.

About Akebia Therapeutics

(Get Free Report)

Akebia Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for patients with kidney diseases. The company’s lead product investigational product candidate is Vafseo (vadadustat), an oral hypoxia-inducible factor prolyl hydroxylase, which is in Phase III development for the treatment of anemia due to chronic kidney disease (CKD) in dialysis-dependent and non-dialysis dependent patients. It offers Auryxia, a ferric citrate that is used to control the serum phosphorus levels in adult patients with DD-CKD on dialysis; and the treatment of iron deficiency anemia in adult patients with CKD not on dialysis. The company’s product pipeline includes AKB-9090, a drug targeting critical-care indications; and AKB-10108, a drug targeting conditions related to premature birth. It has collaboration agreements with Mitsubishi Tanabe Pharma Corporation for the development and commercialization of vadadustat in Japan and other Asian countries, as well as research and license agreement with Janssen Pharmaceutica NV for the development and commercialization of hypoxia-inducible factor prolyl hydroxylase targeted compounds worldwide. Akebia Therapeutics, Inc. was incorporated in 2007 and is headquartered in Cambridge, Massachusetts.

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