Contrasting Recursion Pharmaceuticals (NASDAQ:RXRX) and Oramed Pharmaceuticals (NASDAQ:ORMP)

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

Institutional and Insider Ownership

12.7% of Oramed Pharmaceuticals shares are held by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are held by institutional investors. 20.8% of Oramed Pharmaceuticals shares are held by company insiders. Comparatively, 6.7% of Recursion Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Oramed Pharmaceuticals and Recursion Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oramed Pharmaceuticals	$2.00 million	90.06	$64.05 million	$4.12	1.05
Recursion Pharmaceuticals	$74.68 million	31.25	-$644.76 million	($1.04)	-4.19

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oramed Pharmaceuticals	N/A	-5.17%	-4.54%
Recursion Pharmaceuticals	-945.94%	-50.41%	-38.25%

Analyst Recommendations

This is a summary of recent ratings for Oramed Pharmaceuticals and Recursion Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oramed Pharmaceuticals	0	1	0	0	2.00
Recursion Pharmaceuticals	1	2	2	0	2.20

Recursion Pharmaceuticals has a consensus price target of $8.06, indicating a potential upside of 84.86%. Given Recursion Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Recursion Pharmaceuticals is more favorable than Oramed Pharmaceuticals.

Risk and Volatility

Oramed Pharmaceuticals has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Summary

Oramed Pharmaceuticals beats Recursion Pharmaceuticals on 9 of the 14 factors compared between the two stocks.

About Oramed Pharmaceuticals

Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes. It has license agreements with Oravax Medical Inc. to commercialize oral vaccines for COVID-19 and other novel coronaviruses. Oramed Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in New York.

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.