ARCA biopharma (NASDAQ:ABIO – Get Rating) and Alpha Teknova (NASDAQ:TKNO – Get Rating) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Institutional and Insider Ownership
15.4% of ARCA biopharma shares are owned by institutional investors. Comparatively, 22.7% of Alpha Teknova shares are owned by institutional investors. 20.3% of ARCA biopharma shares are owned by insiders. Comparatively, 15.2% of Alpha Teknova shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares ARCA biopharma and Alpha Teknova’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ARCA biopharma | N/A | -22.39% | -21.21% |
| Alpha Teknova | -114.60% | -25.50% | -18.18% |
Volatility and Risk
Earnings and Valuation
This table compares ARCA biopharma and Alpha Teknova’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ARCA biopharma | N/A | N/A | -$9.93 million | ($0.69) | -2.86 |
| Alpha Teknova | $41.42 million | 1.68 | -$47.47 million | ($1.69) | -1.46 |
ARCA biopharma has higher earnings, but lower revenue than Alpha Teknova. ARCA biopharma is trading at a lower price-to-earnings ratio than Alpha Teknova, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for ARCA biopharma and Alpha Teknova, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ARCA biopharma | 0 | 0 | 0 | 0 | N/A |
| Alpha Teknova | 0 | 0 | 1 | 0 | 3.00 |
Alpha Teknova has a consensus target price of $9.33, indicating a potential upside of 277.87%. Given Alpha Teknova’s higher probable upside, analysts clearly believe Alpha Teknova is more favorable than ARCA biopharma.
About ARCA biopharma
ARCA biopharma, Inc. is a clinical-stage biopharmaceutical company, which engages in the development and commercialization of targeted therapies for cardiovascular diseases. The firm focuses on the cardiovascular pathophysiology, molecular genetics, and clinical development. Its product candidate, Gencaro is a pharmacologic beta-blocker and mild vasodilator, which is developed for the treatment of chronic heart failure and other indications. The company was founded by Michael R. Bristow and Christopher David Ozeroff in 1992 and is headquartered in Westminster, CO.
About Alpha Teknova
Alpha Teknova, Inc. provides critical reagents for life sciences market in the United States and internationally. Its reagents enable the discovery, development, and production of biopharmaceutical products, such as drug therapies, novel vaccines, and molecular diagnostics. The company offers pre-poured media plates for cell growth and cloning; liquid cell culture media and supplements for cellular expansion; and molecular biology reagents for sample manipulation, resuspension, and purification. It serves life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostic franchises, and academic and government research institutions. The company was founded in 1996 and is headquartered in Hollister, California.
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