Head-To-Head Review: Korro Bio (NASDAQ:KRRO) and Recursion Pharmaceuticals (NASDAQ:RXRX)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Recursion Pharmaceuticals and Korro Bio, as reported by MarketBeat.

	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, indicating a potential upside of 111.21%. Korro Bio has a consensus target price of $16.71, indicating a potential upside of 13.70%. Given Recursion Pharmaceuticals’ higher probable upside, 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%

Insider & Institutional 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 company insiders. Comparatively, 4.8% of Korro Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Recursion Pharmaceuticals and Korro Bio”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	27.21	-$644.76 million	($1.20)	-3.20
Korro Bio	$6.39 million	33.17	-$117.26 million	($11.67)	-1.26

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.

Risk & Volatility

Recursion Pharmaceuticals has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Korro Bio has a beta of 3, indicating that its share price is 200% more volatile than the S&P 500.

Summary

Recursion Pharmaceuticals beats Korro Bio on 8 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.