Fresh Tracks Therapeutics (NASDAQ:FRTX) & Ikena Oncology (NASDAQ:IKNA) Financial Analysis

Fresh Tracks Therapeutics (NASDAQ:FRTX) and Ikena Oncology (NASDAQ:IKNA) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

25.0% of Fresh Tracks Therapeutics shares are owned by institutional investors. Comparatively, 75.0% of Ikena Oncology shares are owned by institutional investors. 0.2% of Fresh Tracks Therapeutics shares are owned by insiders. Comparatively, 5.9% of Ikena Oncology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Fresh Tracks Therapeutics and Ikena Oncology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresh Tracks Therapeutics	$8.01 million	0.53	-$5.69 million	($1.41)	-0.51
Ikena Oncology	$9.16 million	8.90	-$68.17 million	($1.23)	-1.37

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

Volatility and Risk

Fresh Tracks Therapeutics has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Ikena Oncology has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Fresh Tracks Therapeutics and Ikena Oncology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresh Tracks Therapeutics	0	0	0	0	0.00
Ikena Oncology	0	1	1	0	2.50

Ikena Oncology has a consensus target price of $3.00, suggesting a potential upside of 77.51%. Given Ikena Oncology’s stronger consensus rating and higher probable upside, analysts clearly believe Ikena Oncology is more favorable than Fresh Tracks Therapeutics.

Profitability

This table compares Fresh Tracks Therapeutics and Ikena Oncology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fresh Tracks Therapeutics	N/A	N/A	N/A
Ikena Oncology	N/A	-36.88%	-33.08%

Summary

Ikena Oncology beats Fresh Tracks Therapeutics on 8 of the 11 factors compared between the two stocks.

About Fresh Tracks Therapeutics

Fresh Tracks Therapeutics, Inc. does not have significant operations. Previously, the company was engaged in the development of various prescription therapeutics for the treatment of autoimmune, inflammatory, and other debilitating diseases in the United States. Fresh Tracks Therapeutics, Inc. was founded in 2009 and is headquartered in Boulder, Colorado.

About Ikena Oncology

Ikena Oncology, Inc. operates as an oncology company that develops differentiated therapies for patients in need that target nodes of cancer growth, spread, and therapeutic resistance in the United States. Its lead program is IK-930, an internally discovered, oral, TEAD1-selective, small molecule inhibitor of the Hippo pathway. The company also develops IK-595, a molecular glue designed to trap MEK and RAF in an inactive complex. Ikena Oncology, Inc. was incorporated in 2016 and is headquartered in Boston, Massachusetts.