Recursion Pharmaceuticals (NASDAQ:RXRX – Get Free Report) and Celularity (NASDAQ:CELU – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.
Earnings and Valuation
This table compares Recursion Pharmaceuticals and Celularity”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 | 26.52 | -$644.76 million | ($1.04) | -3.56 |
| Celularity | $26.55 million | 1.19 | -$91.72 million | ($1.69) | -0.58 |
Celularity has lower revenue, but higher earnings than Recursion Pharmaceuticals. Recursion Pharmaceuticals is trading at a lower price-to-earnings ratio than Celularity, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Recursion Pharmaceuticals has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Celularity has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Institutional and Insider Ownership
89.1% of Recursion Pharmaceuticals shares are held by institutional investors. Comparatively, 19.0% of Celularity shares are held by institutional investors. 6.7% of Recursion Pharmaceuticals shares are held by insiders. Comparatively, 17.3% of Celularity shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Recursion Pharmaceuticals and Celularity’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Recursion Pharmaceuticals | -945.94% | -50.41% | -38.25% |
| Celularity | -374.87% | N/A | -64.45% |
Analyst Ratings
This is a summary of recent ratings and price targets for Recursion Pharmaceuticals and Celularity, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Recursion Pharmaceuticals | 1 | 2 | 2 | 0 | 2.20 |
| Celularity | 1 | 0 | 0 | 0 | 1.00 |
Recursion Pharmaceuticals currently has a consensus target price of $8.18, indicating a potential upside of 121.08%. Given Recursion Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Recursion Pharmaceuticals is more favorable than Celularity.
Summary
Recursion Pharmaceuticals beats Celularity on 9 of the 14 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 Celularity
Celularity Inc., a clinical-stage biotechnology company, develops off-the-shelf placental-derived allogeneic cell therapies for the treatment of cancer, immune, and infectious diseases. It operates through three segments: Cell Therapy, Degenerative Disease, and BioBanking. The company's lead therapeutic programs include CYCART-19, an allogeneic CAR-T cell for the treatment of non-Hodkin's lymphoma (NHL) and mantle cell lymphoma (MCL); CYNK-001, an allogeneic unmodified natural killer cell that is in Phase I/II clinical trial for the treatment of acute myeloid leukemia (AML); and APPL-001, a genetically modified placental-derived mesenchymal-like adherent stromal cell for the treatment of Crohn's disease. It is also developing CYCART-201 for the treatment of NHL and MCL, and human epidermal growth factor receptor 2 positive cancers; CYNK-301, a next generation chimeric antigen receptor-natural killer (CAR-NK) for treating relapse refractory AML; CYNK-302, a CAR-NK to treat non-small cell lung cancer; and pExo-001, a human postpartum placenta derived exosome product for the treatment of osteoarthritis. It also produces, sells, and licenses products that are used in surgical and wound care markets, such as Biovance, Biovance 3L, Interfyl, and Centaflex; and collects and stores stem cells from umbilical cords and placentas under the LifebankUSA brand. The company has licensing agreement with Sorrento Therapeutics, Inc. for the development and commercialization of licensed CD19 CAR-T products; and research collaboration services agreement with Regeneron Pharmaceuticals, Inc. to support the research of allogeneic cell therapy candidates. The company was founded in 1998 and is based in Florham Park, New Jersey.
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