OmniAb (NASDAQ:OABI – Get Free Report) and Recursion Pharmaceuticals (NASDAQ:RXRX – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Risk & Volatility
OmniAb has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
Valuation and Earnings
This table compares OmniAb and Recursion Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OmniAb | $18.67 million | 21.09 | -$64.78 million | ($0.46) | -5.91 |
| Recursion Pharmaceuticals | $74.68 million | 24.41 | -$644.76 million | ($1.20) | -2.87 |
OmniAb has higher earnings, but lower revenue than Recursion Pharmaceuticals. OmniAb is trading at a lower price-to-earnings ratio than Recursion Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for OmniAb and Recursion Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OmniAb | 1 | 0 | 2 | 0 | 2.33 |
| Recursion Pharmaceuticals | 1 | 2 | 2 | 0 | 2.20 |
OmniAb currently has a consensus price target of $3.00, indicating a potential upside of 10.29%. Recursion Pharmaceuticals has a consensus price target of $8.10, indicating a potential upside of 135.47%. Given Recursion Pharmaceuticals’ higher possible upside, analysts clearly believe Recursion Pharmaceuticals is more favorable than OmniAb.
Insider and Institutional Ownership
72.1% of OmniAb shares are owned by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. 9.8% of OmniAb shares are owned by insiders. Comparatively, 8.4% of Recursion Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares OmniAb and Recursion Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OmniAb | -187.59% | -20.31% | -18.10% |
| Recursion Pharmaceuticals | -842.95% | -54.33% | -40.60% |
Summary
OmniAb beats Recursion Pharmaceuticals on 7 of the 13 factors compared between the two stocks.
About OmniAb
OmniAb, Inc., a biotechnology company, engages in the discovery and provision of therapeutic antibody discovery technologies in the United States. The company's technology platform creates and screens diverse antibody repertoires and identify optimal antibodies for partners' drug development efforts. Its OmniAb platform is the biological intelligence of proprietary transgenic animals, including OmniRat, OmniChicken, and OmniMouse that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. The company's OmniFlic, a bispecific rat, and OmniClic, a bispecific chicken, designed for discovery of bispecific antibody applications; OmniTaur, which provides unique structural characteristics of cow antibodies for complex targets; and OmniDeep, a suite of in silico, an AI and machine learning tools for therapeutic discovery and optimization through various technologies and capabilities. OmniAb, Inc. was founded in 2012 and is headquartered in Emeryville, California.
About Recursion Pharmaceuticals
Recursion Pharmaceuticals, Inc. operates as a clinical-stage biotechnology company, engages in the decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery. The company develops REC-994, which is in Phase 2 clinical trial to treat cerebral cavernous malformation; REC-2282, which is in Phase 2/3 clinical trial for the treatment of neurofibromatosis type 2; REC-4881, which is in Phase 1b/2 clinical trial to treat familial adenomatous polyposis; REC-3964, which is in Phase 1 clinical trial to treat Clostridioides difficile infection; and REC-4881, which is in Phase 2 clinical trial to treat AXIN1 or APC mutant cancers. Its preclinical stage product includes RBM39 to treat HR-proficient ovarian cancer. The company has collaboration and agreement with Bayer AG; the University of Utah Research Foundation; Ohio State Innovation Foundation; Roche & Genentech; and Takeda Pharmaceutical Company Limited. Recursion Pharmaceuticals, Inc. was incorporated in 2013 and is headquartered in Salt Lake City, Utah.
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