Critical Comparison: Rezolute (NASDAQ:RZLT) & Akero Therapeutics (NASDAQ:AKRO)

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

Profitability

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

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

Insider & Institutional Ownership

83.0% of Rezolute shares are owned by institutional investors. 7.9% of Akero Therapeutics shares are owned by company insiders. Comparatively, 18.4% of Rezolute shares are owned 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.

Volatility and Risk

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

Earnings & Valuation

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

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

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.

Analyst Ratings

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

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

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

Summary

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

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.

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.