Financial Review: Akebia Therapeutics (NASDAQ:AKBA) versus Alterity Therapeutics (NASDAQ:ATHE)

Akebia Therapeutics (NASDAQ:AKBA – Get Rating) and Alterity Therapeutics (NASDAQ:ATHE – Get Rating) 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, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Valuation and Earnings

This table compares Akebia Therapeutics and Alterity Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akebia Therapeutics	$292.60 million	0.91	-$92.56 million	($0.31)	-4.61
Alterity Therapeutics	$3.37 million	3.21	-$9.32 million	N/A	N/A

Alterity Therapeutics has lower revenue, but higher earnings than Akebia Therapeutics.

Risk and Volatility

Akebia Therapeutics has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Alterity Therapeutics has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Akebia Therapeutics and Alterity Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akebia Therapeutics	0	1	0	0	2.00
Alterity Therapeutics	0	1	1	0	2.50

Akebia Therapeutics currently has a consensus target price of $2.00, indicating a potential upside of 39.86%. Alterity Therapeutics has a consensus target price of $25.00, indicating a potential upside of 825.93%. Given Alterity Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Alterity Therapeutics is more favorable than Akebia Therapeutics.

Institutional and Insider Ownership

28.1% of Akebia Therapeutics shares are owned by institutional investors. Comparatively, 1.7% of Alterity Therapeutics shares are owned by institutional investors. 3.7% of Akebia Therapeutics shares are owned by company insiders. Comparatively, 38.8% of Alterity Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Akebia Therapeutics	-20.79%	-235.17%	-10.55%
Alterity Therapeutics	N/A	N/A	N/A

Summary

Alterity Therapeutics beats Akebia Therapeutics on 10 of the 12 factors compared between the two stocks.

About Akebia Therapeutics

(Get Rating)

Akebia Therapeutics, Inc. is a biopharmaceutical company, which engages in the development and commercialization of therapeutics for patients with kidney diseases. The firm is also involved in the development and commercialization of drugs for the treatment of renal and metabolic disorders. Its products include Auryxia and Vadadustat. The company was founded by Joseph H. Gardner, John M. Rice, Michael E. Pape, Josh P. Fairbank, and Robert A. Shalwitz on February 27, 2007 and is headquartered in Cambridge, MA.

About Alterity Therapeutics

(Get Rating)

Alterity Therapeutics Ltd. engages in the research and development into Parkinsonian and other neurodegenerative disorders. The company was founded by Geoffrey Paul Kempler on November 11, 1997 and is headquartered in Melbourne, Australia.