Recursion Pharmaceuticals (NASDAQ:RXRX – Get Free Report) and Achieve Life Sciences (NASDAQ:ACHV – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.
Insider and Institutional Ownership
89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. Comparatively, 33.5% of Achieve Life Sciences shares are owned by institutional investors. 8.4% of Recursion Pharmaceuticals shares are owned by company insiders. Comparatively, 3.0% of Achieve Life Sciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Recursion Pharmaceuticals has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Achieve Life Sciences has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Recursion Pharmaceuticals | $74.68 million | 23.45 | -$644.76 million | ($1.20) | -2.77 |
| Achieve Life Sciences | N/A | N/A | -$54.65 million | ($1.30) | -4.01 |
Achieve Life Sciences has lower revenue, but higher earnings than Recursion Pharmaceuticals. Achieve Life Sciences is trading at a lower price-to-earnings ratio than Recursion Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Recursion Pharmaceuticals and Achieve Life Sciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Recursion Pharmaceuticals | -842.95% | -54.33% | -40.60% |
| Achieve Life Sciences | N/A | -204.14% | -121.36% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Recursion Pharmaceuticals and Achieve Life Sciences, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Recursion Pharmaceuticals | 1 | 2 | 2 | 0 | 2.20 |
| Achieve Life Sciences | 1 | 0 | 3 | 2 | 3.00 |
Recursion Pharmaceuticals presently has a consensus target price of $9.20, suggesting a potential upside of 177.11%. Achieve Life Sciences has a consensus target price of $14.67, suggesting a potential upside of 181.51%. Given Achieve Life Sciences’ stronger consensus rating and higher probable upside, analysts clearly believe Achieve Life Sciences is more favorable than Recursion Pharmaceuticals.
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 Achieve Life Sciences
Achieve Life Sciences, Inc., a clinical-stage pharmaceutical company, develops and commercializes cytisinicline for smoking cessation and nicotine addiction. The company offers cytisinicline, a plant-based alkaloid that interacts with nicotine receptors in the brain that reduce the severity of nicotine withdrawal symptoms. It has license and supply agreement with Sopharma AD and University of Bristol Achieve Life Sciences, Inc. is based in Vancouver, Canada.
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