Contrasting Recursion Pharmaceuticals (NASDAQ:RXRX) and Korro Bio (NASDAQ:KRRO)

Korro Bio (NASDAQ:KRROGet Free Report) and Recursion Pharmaceuticals (NASDAQ:RXRXGet Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

Korro Bio has a beta of 3.01, suggesting that its stock price is 201% more volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Profitability

This table compares Korro Bio and Recursion Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Korro Bio -1,834.48% -117.86% -71.04%
Recursion Pharmaceuticals -842.95% -54.33% -40.60%

Insider & Institutional Ownership

13.2% of Korro Bio shares are owned by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. 4.8% of Korro Bio shares are owned by company insiders. Comparatively, 6.7% of Recursion Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Korro Bio 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
Korro Bio $6.39 million 29.10 -$117.26 million ($11.67) -1.10
Recursion Pharmaceuticals $65.74 million 29.68 -$644.76 million ($1.20) -3.07

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Korro Bio and Recursion Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Korro Bio 1 2 6 3 2.92
Recursion Pharmaceuticals 1 2 2 0 2.20

Korro Bio presently has a consensus target price of $16.71, suggesting a potential upside of 29.62%. Recursion Pharmaceuticals has a consensus target price of $8.10, suggesting a potential upside of 119.99%. Given Recursion Pharmaceuticals’ higher possible upside, analysts clearly believe Recursion Pharmaceuticals is more favorable than Korro Bio.

Summary

Recursion Pharmaceuticals beats Korro Bio on 9 of the 15 factors compared between the two stocks.

About Korro Bio

(Get Free Report)

Korro Bio, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of genetic medicines based on editing RNA for the treatment of rare and highly prevalent diseases primarily in the United States. Its lead product candidate is KRRO-110 which is in preclinical trials for the treatment of Alpha-1 Antitrypsin Deficiency (AATD). It uses its RNA editing platform, OPERA to generate differentiated RNA editing product candidates. The company is also developing programs for Parkinson's disease, Amyotrophic lateral sclerosis, severe alcohol-associated hepatitis, and other subsets of pain. Korro Bio, Inc. was founded in 2018 and is based in Cambridge, Massachusetts.

About Recursion Pharmaceuticals

(Get Free Report)

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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