Contrasting Rezolute (NASDAQ:RZLT) and Akero Therapeutics (NASDAQ:AKRO)

Rezolute (NASDAQ:RZLT) and Akero Therapeutics (NASDAQ:AKRO) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rezolute	N/A	N/A	-$68.46 million	($1.22)	-2.50
Akero Therapeutics	N/A	N/A	-$151.76 million	($3.75)	-12.06

Akero Therapeutics is trading at a lower price-to-earnings ratio than Rezolute, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rezolute and Akero Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rezolute	N/A	-70.27%	-62.41%
Akero Therapeutics	N/A	-32.46%	-29.83%

Risk and Volatility

Rezolute has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Akero Therapeutics has a beta of -0.19, suggesting that its stock price is 119% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rezolute and Akero Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rezolute	0	0	7	1	3.13
Akero Therapeutics	0	0	9	0	3.00

Rezolute presently has a consensus price target of $24.38, indicating a potential upside of 699.18%. Akero Therapeutics has a consensus price target of $76.29, indicating a potential upside of 68.70%. Given Rezolute’s stronger consensus rating and higher possible upside, equities analysts plainly believe Rezolute is more favorable than Akero Therapeutics.

Insider and Institutional Ownership

83.0% of Rezolute shares are held by institutional investors. 18.4% of Rezolute shares are held by company insiders. Comparatively, 7.9% of Akero Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Rezolute beats Akero Therapeutics on 9 of the 12 factors compared between the two stocks.

About Rezolute

Rezolute, Inc., a clinical stage biopharmaceutical company, develops therapies for metabolic diseases associated with chronic glucose imbalance in the United States. The company's lead product candidate is RZ358, a human monoclonal antibody that is in Phase 2b clinical trial for the treatment of congenital hyperinsulinism, an ultra-rare pediatric genetic disorder. It is also developing RZ402, an oral plasma kallikrein inhibitor, which is in clinical trial for the chronic treatment of diabetic macular edema. The company was formerly known as AntriaBio, Inc. and changed its name to Rezolute, Inc. in December 2017. Rezolute, Inc. was incorporated in 2010 and is headquartered in Redwood City, California.

About Akero Therapeutics

Akero Therapeutics, Inc., together with its subsidiary, engages in the development of treatments for patients with serious metabolic diseases in the United States. The company's lead product candidate is efruxifermin (EFX), which is in Phase 3 clinical trials that protects against cellular stress and regulates the metabolism of lipids, carbohydrates, and proteins throughout the body for the treatment of biopsy-confirmed metabolic dysfunction-associated steatohepatitis (MASH) patients. It has a license agreement with Amgen Inc. to develop, manufacture, use, distribute, and sell EFX as a treatment for MASH and other metabolic diseases. The company was formerly known as Pippin Pharmaceuticals, Inc. and changed its name to Akero Therapeutics, Inc. in May 2018. Akero Therapeutics, Inc. was incorporated in 2017 and is headquartered in South San Francisco, California.