Reviewing Recursion Pharmaceuticals (NASDAQ:RXRX) & Xencor (NASDAQ:XNCR)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xencor	$125.58 million	7.03	-$91.92 million	($1.24)	-9.71
Recursion Pharmaceuticals	$74.68 million	24.22	-$644.76 million	($1.48)	-2.32

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

Risk & Volatility

Xencor has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Institutional & Insider Ownership

89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. 4.8% of Xencor shares are owned by company insiders. Comparatively, 8.4% of Recursion Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xencor	-73.20%	-14.58%	-10.42%
Recursion Pharmaceuticals	-863.37%	-63.98%	-47.05%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Xencor and Recursion Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xencor	1	1	8	0	2.70
Recursion Pharmaceuticals	1	2	2	0	2.20

Xencor currently has a consensus target price of $25.00, indicating a potential upside of 107.64%. Recursion Pharmaceuticals has a consensus target price of $9.40, indicating a potential upside of 174.05%. Given Recursion Pharmaceuticals’ higher probable upside, analysts clearly believe Recursion Pharmaceuticals is more favorable than Xencor.

Summary

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

About Xencor

Xencor, Inc., a clinical stage biopharmaceutical company, focuses on the discovery and development of engineered monoclonal antibody and cytokine therapeutics to treat patients with cancer and autoimmune diseases. The company provides Sotrovimab that targets the SARS-CoV-2 virus; Ultomiris for the treatment of patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome; and Monjuvi for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma. It develops Plamotamab, a bispecific antibody, which is in Phase I clinical trial to treat non-Hodgkin lymphoma; Vudalimab, a bispecific antibody, which is in Phase II clinical trial to treat metastatic castration-resistant prostate cancer and other solid tumor types. The company is also developing XmAb306, which is in Phase I clinical trial to treat solid tumors; XmAb104, which is in Phase II clinical trial to treat patients with selected solid tumors; XmAb564 that is in Phase Ia clinical trial to treat autoimmune diseases; AMG 509, which is in Phase I clinical trial to treat prostate cancer; XmAb819 for patients with renal cell carcinoma; XmAb541 for the treatment of ovarian cancer; and XmAb662 which is in Phase I clinical trial to treat patients with solid tumors. In addition, the company develops VIR-3434, which is in Phase II clinical trial for patients with hepatitis B virus infection; and VIR-2482 that is in Phase 2 clinical trial to trat hepatitis B virus. The company develops AIMab7195 to reduce blood serum levels of IgE that mediates allergic responses and allergic disease; Obexelimab to treat autoimmune disease; and Xpro1595 to treat patients with Alzheimer's disease, and depression. It has a license agreement with Caris Life Sciences. Xencor, Inc. was incorporated in 1997 and is headquartered in Pasadena, California.

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.