Financial Analysis: Recursion Pharmaceuticals (RXRX) vs. Its Peers

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

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Recursion Pharmaceuticals	$74.68 million	-$644.76 million	-3.54
Recursion Pharmaceuticals Competitors	$691.14 million	$10.43 million	-10.01

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

Institutional & Insider 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, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Recursion Pharmaceuticals	-697.15%	-46.47%	-35.44%
Recursion Pharmaceuticals Competitors	-9,046.59%	-199.78%	-30.61%

Analyst Recommendations

This is a summary of recent ratings and price targets for Recursion Pharmaceuticals and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	1	2	2	0	2.20
Recursion Pharmaceuticals Competitors	9789	15058	45310	1572	2.54

Recursion Pharmaceuticals currently has a consensus target price of $8.18, indicating a potential upside of 122.28%. As a group, “Biotechnology” companies have a potential upside of 97.76%. Given Recursion Pharmaceuticals’ higher possible upside, analysts clearly believe Recursion Pharmaceuticals is more favorable than its competitors.

Risk and Volatility

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

Summary

Recursion Pharmaceuticals competitors 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.