Head to Head Survey: Zealand Pharma A/S (OTCMKTS:ZLDPF) vs. Recursion Pharmaceuticals (NASDAQ:RXRX)

Recursion Pharmaceuticals (NASDAQ:RXRX) and Zealand Pharma A/S (OTCMKTS:ZLDPF) are both mid-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Earnings and Valuation

This table compares Recursion Pharmaceuticals and Zealand Pharma A/S”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recursion Pharmaceuticals	$74.68 million	27.20	-$644.76 million	($1.04)	-3.65
Zealand Pharma A/S	$1.40 billion	2.15	$977.29 million	$6.03	6.96

Zealand Pharma A/S has higher revenue and earnings than Recursion Pharmaceuticals. Recursion Pharmaceuticals is trading at a lower price-to-earnings ratio than Zealand Pharma A/S, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

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

Volatility and Risk

Recursion Pharmaceuticals has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Zealand Pharma A/S has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Recursion Pharmaceuticals and Zealand Pharma A/S, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	1	2	2	0	2.20
Zealand Pharma A/S	0	9	1	1	2.27

Recursion Pharmaceuticals presently has a consensus price target of $8.06, suggesting a potential upside of 112.38%. Given Recursion Pharmaceuticals’ higher probable upside, equities research analysts plainly believe Recursion Pharmaceuticals is more favorable than Zealand Pharma A/S.

Profitability

This table compares Recursion Pharmaceuticals and Zealand Pharma A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recursion Pharmaceuticals	-945.94%	-50.41%	-38.25%
Zealand Pharma A/S	58.86%	18.53%	17.14%

Summary

Zealand Pharma A/S beats Recursion Pharmaceuticals 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 Zealand Pharma A/S

Zealand Pharma A/S, a biotechnology company, engages in the discovery, development, and commercialization of peptide-based medicines in Denmark. It has a portfolio of medicines focusing on gastrointestinal and metabolic diseases, and other specialty disease areas with unmet medical needs. The company offers Dasiglucagon, a single use syringe or autoinjector for the treatment of severe hypoglycemia; and Dasiglucagon bi-hormone artificial pancreas systems containing insulin and dasiglucagon. Its pipeline includes Dasiglucagon that is in Phase III clinical trials for treating congenital hyperinsulinism. The company is also developing glepaglutide, a long acting GLP-2 analog, which is in Phase III clinical trials for the treatment of short bowel syndrome. The company was incorporated in 1997 and is based in Søborg, Denmark.