Analyzing Recursion Pharmaceuticals (NASDAQ:RXRX) and OmniAb (NASDAQ:OABI)

Recursion Pharmaceuticals (NASDAQ:RXRX) and OmniAb (NASDAQ:OABI) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Volatility and Risk

Recursion Pharmaceuticals has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, OmniAb has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Profitability

This table compares Recursion Pharmaceuticals and OmniAb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recursion Pharmaceuticals	-842.95%	-54.33%	-40.60%
OmniAb	-187.59%	-20.31%	-18.10%

Institutional & Insider Ownership

89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. Comparatively, 72.1% of OmniAb shares are owned by institutional investors. 8.4% of Recursion Pharmaceuticals shares are owned by company insiders. Comparatively, 9.8% of OmniAb shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Recursion Pharmaceuticals and OmniAb”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recursion Pharmaceuticals	$74.68 million	25.62	-$644.76 million	($1.20)	-3.01
OmniAb	$18.67 million	20.32	-$64.78 million	($0.46)	-5.70

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

Analyst Recommendations

This is a summary of current ratings for Recursion Pharmaceuticals and OmniAb, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	1	2	2	0	2.20
OmniAb	1	0	2	0	2.33

Recursion Pharmaceuticals currently has a consensus target price of $8.10, suggesting a potential upside of 124.38%. OmniAb has a consensus target price of $3.00, suggesting a potential upside of 14.50%. Given Recursion Pharmaceuticals’ higher probable upside, equities analysts plainly believe Recursion Pharmaceuticals is more favorable than OmniAb.

Summary

OmniAb beats Recursion Pharmaceuticals 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 OmniAb

OmniAb, Inc., a biotechnology company, engages in the discovery and provision of therapeutic antibody discovery technologies in the United States. The company's technology platform creates and screens diverse antibody repertoires and identify optimal antibodies for partners' drug development efforts. Its OmniAb platform is the biological intelligence of proprietary transgenic animals, including OmniRat, OmniChicken, and OmniMouse that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. The company's OmniFlic, a bispecific rat, and OmniClic, a bispecific chicken, designed for discovery of bispecific antibody applications; OmniTaur, which provides unique structural characteristics of cow antibodies for complex targets; and OmniDeep, a suite of in silico, an AI and machine learning tools for therapeutic discovery and optimization through various technologies and capabilities. OmniAb, Inc. was founded in 2012 and is headquartered in Emeryville, California.