Recursion Pharmaceuticals (NASDAQ:RXRX) vs. Surrozen (NASDAQ:SRZN) Critical Review

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

Institutional and Insider Ownership

66.6% of Surrozen shares are held by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are held by institutional investors. 43.5% of Surrozen shares are held by insiders. Comparatively, 15.8% of Recursion Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surrozen	$12.50 million	3.14	-$43.04 million	N/A	N/A
Recursion Pharmaceuticals	$44.58 million	57.23	-$328.07 million	($1.53)	-4.27

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

Volatility & Risk

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

Analyst Recommendations

This is a summary of recent recommendations for Surrozen and Recursion Pharmaceuticals, as provided by MarketBeat.com.

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

Surrozen currently has a consensus target price of $45.00, suggesting a potential upside of 272.52%. Recursion Pharmaceuticals has a consensus target price of $8.75, suggesting a potential upside of 34.00%. Given Surrozen’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Surrozen is more favorable than Recursion Pharmaceuticals.

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.

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.