Head to Head Comparison: Neurocrine Biosciences (NASDAQ:NBIX) and Recursion Pharmaceuticals (NASDAQ:RXRX)

Neurocrine Biosciences (NASDAQ:NBIX) and Recursion Pharmaceuticals (NASDAQ:RXRX) 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.

Analyst Ratings

This is a breakdown of recent ratings for Neurocrine Biosciences and Recursion Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neurocrine Biosciences	0	5	16	1	2.82
Recursion Pharmaceuticals	1	2	2	0	2.20

Neurocrine Biosciences presently has a consensus price target of $184.15, suggesting a potential upside of 19.31%. Recursion Pharmaceuticals has a consensus price target of $8.10, suggesting a potential upside of 183.71%. Given Recursion Pharmaceuticals’ higher possible upside, analysts clearly believe Recursion Pharmaceuticals is more favorable than Neurocrine Biosciences.

Volatility and Risk

Neurocrine Biosciences has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Insider & Institutional Ownership

92.6% of Neurocrine Biosciences shares are owned by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. 4.6% of Neurocrine Biosciences shares are owned by company insiders. Comparatively, 8.4% of Recursion Pharmaceuticals 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.

Profitability

This table compares Neurocrine Biosciences and Recursion Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neurocrine Biosciences	21.55%	19.79%	13.82%
Recursion Pharmaceuticals	-842.95%	-54.33%	-40.60%

Valuation & Earnings

This table compares Neurocrine Biosciences 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
Neurocrine Biosciences	$3.10 billion	5.00	$478.60 million	$6.49	23.78
Recursion Pharmaceuticals	$74.68 million	20.26	-$644.76 million	($1.20)	-2.38

Neurocrine Biosciences has higher revenue and earnings than Recursion Pharmaceuticals. Recursion Pharmaceuticals is trading at a lower price-to-earnings ratio than Neurocrine Biosciences, indicating that it is currently the more affordable of the two stocks.

Summary

Neurocrine Biosciences beats Recursion Pharmaceuticals on 11 of the 15 factors compared between the two stocks.

About Neurocrine Biosciences

Neurocrine Biosciences, Inc. discovers, develops, and markets pharmaceuticals for neurological, neuroendocrine, and neuropsychiatric disorders in the United States and internationally. The company’s products include INGREZZA for tardive dyskinesia and chorea associated with Huntington’s disease; ALKINDI for adrenal insufficiency; Efmody capsules for classic congenital adrenal hyperplasia; Orilissa tablets for endometriosis; and Oriahnn capsules to treat uterine fibroids. Its product candidates in clinical development include valbenazine to treat dyskinetic cerebral palsy in pediatrics and adults; NBI-921352 to treat developmental and epileptic encephalopathy syndrome in pediatrics and adults; NBI-827104 to treat epileptic encephalopathy with continuous spike-and-wave during sleep; NBI-1076986 to treat movement disorders; crinecerfront to treat congenital adrenal hyperplasia in adults and children; EFMODY to treat congenital adrenal hyperplasia and adrenal insufficiency in adults; valbenazine for the adjunctive treatment of schizophrenia; NBI-1065845 for the treatment of inadequate response to treatment in major depressive disorder; luvadaxistat to treat cognitive impairment related to schizophrenia; NBI-1117568 for the treatment of schizophrenia; NBI-1070770 to treat major depressive disorder; NBI-1117570 for the treatment of symptoms of psychosis and cognition in neurological and neuropsychiatric conditions; and NBI-1117569, NBI-1117567, and NBI-1065890 to treat CNS indications. The company also has license and collaboration agreements with Heptares Therapeutics Limited; Takeda Pharmaceutical Company Limited; Idorsia Pharmaceuticals Ltd; Xenon Pharmaceuticals Inc.; Voyager Therapeutics, Inc.; BIAL Portela & Ca, S.A.; Mitsubishi Tanabe Pharma Corporation; and AbbVie Inc. The company was incorporated in 1992 and is headquartered in San Diego, 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.