If you like ESI stock, you will really like AKT.A. The average analyst target price for Ensign (ESI) is $3.50, for a 48% upside to the current $2.37 share price, while the analyst target price for Akita is $3.30, which is a $109% upside from the current $1.58 share price. Or more than double the upside of Akita (109%) over ESI (48%) per the analyst target prices.
I also looked at results for the last 12 months up to the end of Q3’2023 since Akita has not reported Q4’2023 yet. Net Income before taxes for Akita is 28.6M, or 86.9% of the 32.9 at ESI. Also, net income is 28.4M, or 134% of the 21.2M at ESI. But yet the market cap (plus net debt) of Akita is only $136M ($1.59/ share X 40M shares + 72M debt), or only 6.2% of the $1,704M ($2.37/share X 184M shares + 1,268M debt) at ESI. Therefore, even if the Akita shares quadrupled to 6.36 ($1.59/ share X 4), the Akita market cap (plus net debt) would only change to $326M ($6.36/ share X 40M shares + 72M debt), or only 19.1% of the $1,704 at ESI. Which would still make Akita (at quadruple the current share price) much cheaper than ESI based on the above net income figures. Finally, the net debt to Net income before taxes for Akita is 2.5X (72M/28.6M) compared to the much more indebted ESI at 38.5X (1,268M/32.9M).