Financial Analysis: Recursion Pharmaceuticals (NASDAQ:RXRX) versus Surrozen (NASDAQ:SRZN)

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

Insider and Institutional Ownership

89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. Comparatively, 66.6% of Surrozen shares are owned by institutional investors. 15.8% of Recursion Pharmaceuticals shares are owned by insiders. Comparatively, 43.5% of Surrozen shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Recursion Pharmaceuticals and Surrozen”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recursion Pharmaceuticals	$64.60 million	38.83	-$328.07 million	($1.53)	-4.20
Surrozen	$10.00 million	3.85	-$43.04 million	N/A	N/A

Surrozen has lower revenue, but higher earnings than Recursion Pharmaceuticals.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Recursion Pharmaceuticals and Surrozen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	0	3	2	0	2.40
Surrozen	0	0	1	0	3.00

Recursion Pharmaceuticals currently has a consensus price target of $8.75, suggesting a potential upside of 36.29%. Surrozen has a consensus price target of $45.00, suggesting a potential upside of 279.75%. Given Surrozen’s stronger consensus rating and higher probable upside, analysts clearly believe Surrozen is more favorable than Recursion Pharmaceuticals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Recursion Pharmaceuticals	-579.52%	-76.56%	-55.68%
Surrozen	N/A	-120.51%	-54.68%

Volatility and Risk

Recursion Pharmaceuticals has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Surrozen has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

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 Surrozen

Surrozen, Inc., a clinical stage biotechnology company, discovers and develops drug candidates to selectively modulate the Wnt pathway for tissue repair. The company is developing antibody-based therapeutics which targets various disease areas, including diseases of the intestine, liver, retina, cornea, lung, kidney, cochlea, skin, pancreas, and central nervous system. Its products in pipeline include SZN-043, a hepatocyte-specific R-spondin mimetic bispecific fusion protein, which is in Phase 1b clinical trial for the treatment of severe liver diseases, including alcohol-associated hepatitis. The company develops SZN-413, a Fzd4 targeted bi-specific antibody for the treatment of retinal vascular associated diseases. Surrozen, Inc. has collaboration and license agreement with Boehringer Ingelheim International GmbH to research, develop, and commercialize Fzd4 bi-specific antibodies. Surrozen, Inc. is based in South San Francisco, California.