Traws Pharma (NASDAQ:TRAW) versus Recursion Pharmaceuticals (NASDAQ:RXRX) Financial Review

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

Earnings & Valuation

This table compares Recursion Pharmaceuticals and Traws Pharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recursion Pharmaceuticals	$58.84 million	35.64	-$463.66 million	($1.78)	-2.71
Traws Pharma	$2.90 million	4.65	-$166.52 million	$88.83	0.02

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Recursion Pharmaceuticals	-1,004.91%	-76.09%	-54.29%
Traws Pharma	3,028.25%	-1,812.48%	512.72%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Recursion Pharmaceuticals and Traws Pharma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	0	3	2	0	2.40
Traws Pharma	0	0	0	0	0.00

Recursion Pharmaceuticals currently has a consensus price target of $7.25, suggesting a potential upside of 50.10%. Given Recursion Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Recursion Pharmaceuticals is more favorable than Traws Pharma.

Insider and Institutional Ownership

89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. Comparatively, 7.9% of Traws Pharma shares are owned by institutional investors. 8.4% of Recursion Pharmaceuticals shares are owned by company insiders. Comparatively, 13.6% of Traws Pharma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Recursion Pharmaceuticals has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Traws Pharma has a beta of 1.52, indicating that its share price is 52% more 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 Traws Pharma

Traws Pharma, Inc., a clinical stage biopharmaceutical company, focuses on developing small molecule oral product candidates for respiratory viral diseases and cancer. The company is developing investigational novel therapies for influenza and COVID19 that are designed to address treatment resistance, such as TRX01 (travatrelvir), a Mpro/3CL inhibitor in development for the treatment of COVID19; and TRX100 (viroxavir), an endonuclease inhibitor in development for the treatment of pandemic influenza. It is also developing narazaciclib, a multi-kinase CDK4/6 inhibitor, which is in Phase 1/2 clinical trials in patients with cancer, with or without co-administration of letrozole to define the recommended phase 2 dose for further development in endometrial cancer; and oral rigosertib, which is administered alone or in combination for investigation in various cancers. The company was formerly known as Onconova Therapeutics, Inc. and changed its name to Traws Pharma, Inc. in April 2024. Traws Pharma, Inc. was incorporated in 1998 and is headquartered in Newtown, Pennsylvania.