Recursion Pharmaceuticals (RXRX) & Its Peers Critical Review

Recursion Pharmaceuticals (NASDAQ:RXRX) is one of 844 public companies in the “Biotechnology” industry, but how does it contrast to its rivals? We will compare Recursion Pharmaceuticals to similar companies based on the strength of its risk, profitability, analyst recommendations, dividends, institutional ownership, earnings and valuation.

Insider & Institutional Ownership

89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are owned by institutional investors. 6.7% of Recursion Pharmaceuticals shares are owned by insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Recursion Pharmaceuticals has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals’ rivals have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.

Profitability

This table compares Recursion Pharmaceuticals and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recursion Pharmaceuticals	-697.15%	-47.85%	-36.26%
Recursion Pharmaceuticals Competitors	-12,359.35%	-203.09%	-30.93%

Analyst Ratings

This is a summary of recent recommendations for Recursion Pharmaceuticals and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	1	2	2	0	2.20
Recursion Pharmaceuticals Competitors	9801	15087	45418	1579	2.54

Recursion Pharmaceuticals presently has a consensus target price of $8.18, suggesting a potential upside of 130.10%. As a group, “Biotechnology” companies have a potential upside of 100.59%. Given Recursion Pharmaceuticals’ higher probable upside, research analysts plainly believe Recursion Pharmaceuticals is more favorable than its rivals.

Earnings and Valuation

This table compares Recursion Pharmaceuticals and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Recursion Pharmaceuticals	$67.01 million	-$644.76 million	-3.95
Recursion Pharmaceuticals Competitors	$736.12 million	$13.62 million	-14.91

Recursion Pharmaceuticals’ rivals have higher revenue and earnings than Recursion Pharmaceuticals. Recursion Pharmaceuticals is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Recursion Pharmaceuticals rivals beat Recursion Pharmaceuticals on 7 of the 13 factors compared.

Recursion Pharmaceuticals Company Profile

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.