Head to Head Contrast: Werewolf Therapeutics (NASDAQ:HOWL) and Recursion Pharmaceuticals (NASDAQ:RXRX)

Recursion Pharmaceuticals (NASDAQ:RXRX) and Werewolf Therapeutics (NASDAQ:HOWL) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Profitability

This table compares Recursion Pharmaceuticals and Werewolf Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recursion Pharmaceuticals	-945.94%	-50.41%	-38.25%
Werewolf Therapeutics	N/A	-166.99%	-59.88%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Recursion Pharmaceuticals and Werewolf Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	1	2	2	0	2.20
Werewolf Therapeutics	1	4	2	0	2.14

Recursion Pharmaceuticals currently has a consensus price target of $8.06, suggesting a potential upside of 111.27%. Werewolf Therapeutics has a consensus price target of $4.00, suggesting a potential upside of 311.95%. Given Werewolf Therapeutics’ higher possible upside, analysts plainly believe Werewolf Therapeutics is more favorable than Recursion Pharmaceuticals.

Valuation & Earnings

This table compares Recursion Pharmaceuticals and Werewolf Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recursion Pharmaceuticals	$74.68 million	27.35	-$644.76 million	($1.04)	-3.67
Werewolf Therapeutics	$1.88 million	25.10	-$60.82 million	($0.76)	-1.28

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

Insider and Institutional Ownership

89.1% of Recursion Pharmaceuticals shares are held by institutional investors. Comparatively, 64.8% of Werewolf Therapeutics shares are held by institutional investors. 6.7% of Recursion Pharmaceuticals shares are held by insiders. Comparatively, 23.6% of Werewolf Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Recursion Pharmaceuticals has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Werewolf Therapeutics has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Summary

Recursion Pharmaceuticals beats Werewolf Therapeutics on 7 of the 13 factors compared between the two stocks.

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.

About Werewolf Therapeutics

Werewolf Therapeutics, Inc., a biopharmaceutical company, develops therapeutics engineered to stimulate the body's immune system for the treatment of cancer. The company, through its proprietary PREDATOR platform, designs conditionally activated molecules that stimulate adaptive and innate immunity for addressing the limitations of conventional proinflammatory immune therapies. Its lead product candidates are WTX-124, a conditionally activated Interleukin-2 INDUKINE molecule that is in Phase I/Ib clinical trial for the treatment of advanced or metastatic solid tumors; and WTX-330, a conditionally activated Interleukin-12 INDUKINE molecule, which is in Phase I clinical trial for the treatment of advanced or metastatic solid tumors and lymphoma. The company is also developing JZP898, a conditionally activated interferon alpha INDUKINE molecule for the treatment of cancer; and WTX-712, an activated Interleukin-21(IL-21) and WTX-518, an activated IL-18 (IL-18) INDUKINE molecule for the treatment of cancer. Werewolf Therapeutics, Inc. was incorporated in 2017 and is headquartered in Watertown, Massachusetts.