Karuna Therapeutics (NASDAQ:KRTX) vs. Akebia Therapeutics (NASDAQ:AKBA) Head-To-Head Review

Karuna Therapeutics (NASDAQ:KRTXGet Free Report) and Akebia Therapeutics (NASDAQ:AKBAGet Free Report) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Volatility & Risk

Karuna Therapeutics has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Akebia Therapeutics has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Karuna Therapeutics and Akebia Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Karuna Therapeutics 0 10 6 0 2.38
Akebia Therapeutics 0 0 3 0 3.00

Karuna Therapeutics presently has a consensus target price of $293.92, indicating a potential downside of 10.89%. Akebia Therapeutics has a consensus target price of $4.50, indicating a potential upside of 131.96%. Given Akebia Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Akebia Therapeutics is more favorable than Karuna Therapeutics.

Profitability

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

Net Margins Return on Equity Return on Assets
Karuna Therapeutics N/A -31.63% -30.38%
Akebia Therapeutics -26.32% N/A -20.36%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Karuna Therapeutics $650,000.00 19,383.86 -$433.68 million ($11.72) -28.14
Akebia Therapeutics $194.62 million 2.09 -$51.92 million ($0.28) -6.93

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

Institutional and Insider Ownership

27.0% of Akebia Therapeutics shares are held by institutional investors. 13.2% of Karuna Therapeutics shares are held by insiders. Comparatively, 3.8% of Akebia Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Akebia Therapeutics beats Karuna Therapeutics on 9 of the 14 factors compared between the two stocks.

About Karuna Therapeutics

(Get Free Report)

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, creates and delivers transformative medicines for people living with psychiatric and neurological conditions. Its lead product candidate includes KarXT, an oral modulator of muscarinic receptors for the treatment of acute psychosis in patients with schizophrenia; and for the treatment of central nervous system disorders, such as negative and cognitive symptoms of schizophrenia and psychosis, as well as for the treatment of various peripheral tissues and dementia-related psychosis, including Alzheimer's disease. The company also focuses on developing other muscarinic-targeted drug candidates; and intends to develop lead candidature TRPC4/5 and KAR-2618 for the treatment of depressive disorder. Karuna Therapeutics, Inc. has a license agreement with Eli Lilly and Company, and Zai Lab (Shanghai) Co., Ltd; patent license agreement with PureTech Health LLC; and drug discovery partnership with Charles River Laboratories, as well as drug discovery collaboration with PsychoGenics, Inc. The company was formerly known as Karuna Pharmaceuticals, Inc. and changed its name to Karuna Therapeutics, Inc. in March 2019. Karuna Therapeutics, Inc. was incorporated in 2009 and is headquartered in Boston, Massachusetts.

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 adult patients. It also 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. Akebia Therapeutics, Inc. 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. The company was incorporated in 2007 and is headquartered in Cambridge, Massachusetts.

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