Financial Comparison: Recursion Pharmaceuticals (NASDAQ:RXRX) and Bavarian Nordic (OTCMKTS:BVNRY)

Bavarian Nordic (OTCMKTS:BVNRY) and Recursion Pharmaceuticals (NASDAQ:RXRX) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Bavarian Nordic and Recursion Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bavarian Nordic	0	0	0	0	0.00
Recursion Pharmaceuticals	1	2	2	0	2.20

Recursion Pharmaceuticals has a consensus target price of $8.06, suggesting a potential upside of 170.92%. Given Recursion Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Recursion Pharmaceuticals is more favorable than Bavarian Nordic.

Valuation and Earnings

This table compares Bavarian Nordic and Recursion Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bavarian Nordic	$945.43 million	2.42	$208.23 million	$0.76	12.68
Recursion Pharmaceuticals	$74.68 million	21.33	-$644.76 million	($1.04)	-2.86

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

Profitability

This table compares Bavarian Nordic and Recursion Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bavarian Nordic	19.74%	9.32%	8.14%
Recursion Pharmaceuticals	-945.94%	-50.41%	-38.25%

Volatility and Risk

Bavarian Nordic has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Institutional & Insider Ownership

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

Summary

Bavarian Nordic beats Recursion Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Bavarian Nordic

Bavarian Nordic A/S develops, manufactures, and commercializes life-saving vaccines. The company offers non-replicating smallpox and monkeypox vaccines under the IMVAMUNE, IMVANEX, and JYNNEOS names; rabies vaccine for human use under the Rabipur/RabAvert name; tick-borne encephalitis vaccine under the Encepur name; and Ebola vaccine under the MVABEA name. It is also developing MVA-BN for the treatment of smallpox; MVA-BN RSV, which is in Phase III clinical trials for the treatment of respiratory syncytial virus; ABNCoV2 that has completed Phase III clinical trial for the treatment of SARS-CoV-2. The company has license and collaboration agreement with AdaptVac; and license agreements with National Cancer Institute and Public Health Service. It operates in the United States, Canada, France, Germany, Spain, Australia, Switzerland, Sweden, Chile, Taiwan, the United Kingdom, Hong Kong, Saudi Arabia, Belgium, and internationally. Bavarian Nordic A/S was incorporated in 1992 and is headquartered in Hellerup, Denmark.

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.