Recursion Pharmaceuticals (NASDAQ:RXRX – Get Free Report) and Korro Bio (NASDAQ:KRRO – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.
Risk and Volatility
Recursion Pharmaceuticals has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Korro Bio has a beta of 3.01, suggesting that its stock price is 201% more volatile than the S&P 500.
Institutional & Insider Ownership
89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. Comparatively, 13.2% of Korro Bio shares are owned by institutional investors. 6.7% of Recursion Pharmaceuticals shares are owned by insiders. Comparatively, 4.8% of Korro Bio shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Recursion Pharmaceuticals | $65.74 million | 29.68 | -$644.76 million | ($1.20) | -3.07 |
| Korro Bio | $6.39 million | 29.10 | -$117.26 million | ($11.67) | -1.10 |
Korro Bio has lower revenue, but higher earnings 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 breakdown of recent ratings and target prices for Recursion Pharmaceuticals and Korro Bio, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Recursion Pharmaceuticals | 1 | 2 | 2 | 0 | 2.20 |
| Korro Bio | 1 | 2 | 6 | 3 | 2.92 |
Recursion Pharmaceuticals presently has a consensus target price of $8.10, suggesting a potential upside of 119.99%. Korro Bio has a consensus target price of $16.71, suggesting a potential upside of 29.62%. Given Recursion Pharmaceuticals’ higher probable upside, research analysts plainly believe Recursion Pharmaceuticals is more favorable than Korro Bio.
Profitability
This table compares Recursion Pharmaceuticals and Korro Bio’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% |
| Korro Bio | -1,834.48% | -117.86% | -71.04% |
Summary
Recursion Pharmaceuticals beats Korro Bio on 9 of the 15 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 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.
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