Korro Bio (NASDAQ:KRRO – Get Free Report) and Recursion Pharmaceuticals (NASDAQ:RXRX – Get 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
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
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
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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