Analyzing Akero Therapeutics (NASDAQ:AKRO) and NewAmsterdam Pharma (NASDAQ:NAMS)

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

Earnings & Valuation

This table compares Akero Therapeutics and NewAmsterdam Pharma”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)	-6.70
NewAmsterdam Pharma	$14.09 million	154.42	-$176.94 million	N/A	N/A

Akero Therapeutics has higher earnings, but lower revenue than NewAmsterdam Pharma.

Profitability

This table compares Akero Therapeutics and NewAmsterdam Pharma’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%
NewAmsterdam Pharma	N/A	N/A	N/A

Risk & Volatility

Akero Therapeutics has a beta of -0.19, suggesting that its stock price is 119% less volatile than the S&P 500. Comparatively, NewAmsterdam Pharma has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Akero Therapeutics and NewAmsterdam Pharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akero Therapeutics	0	1	7	0	2.88
NewAmsterdam Pharma	0	0	6	0	3.00

Akero Therapeutics currently has a consensus price target of $46.83, indicating a potential upside of 86.29%. NewAmsterdam Pharma has a consensus price target of $39.80, indicating a potential upside of 69.00%. Given Akero Therapeutics’ higher probable upside, analysts plainly believe Akero Therapeutics is more favorable than NewAmsterdam Pharma.

Institutional and Insider Ownership

89.9% of NewAmsterdam Pharma shares are owned by institutional investors. 7.9% of Akero Therapeutics shares are owned by company insiders. Comparatively, 19.5% of NewAmsterdam Pharma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

NewAmsterdam Pharma beats Akero Therapeutics on 7 of the 10 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 NewAmsterdam Pharma

NewAmsterdam Pharma Company N.V., a late-stage biopharmaceutical company, develops therapies to enhance patient care in populations with metabolic disease. It is developing obicetrapib, an oral low-dose cholesteryl ester transfer protein (CETP) inhibitor, that is in various clinical trials as a monotherapy and a combination therapy with ezetimibe for lowering LDL-C for cardiovascular diseases. The company also develops Obicetrapib which is in Phase 2a clinical trial for Alzheimer’s disease. NewAmsterdam Pharma Company N.V. is headquartered in Naarden, the Netherlands.