Humacyte (NASDAQ:HUMA) vs. Recursion Pharmaceuticals (NASDAQ:RXRX) Critical Contrast

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

Institutional & Insider Ownership

44.7% of Humacyte shares are held by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are held by institutional investors. 23.1% of Humacyte 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, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Humacyte	N/A	-306.81%	-69.64%
Recursion Pharmaceuticals	-765.90%	-79.96%	-56.45%

Valuation & Earnings

This table compares Humacyte and Recursion Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Humacyte	$1.57 million	533.22	-$110.78 million	($1.00)	-7.03
Recursion Pharmaceuticals	$45.23 million	49.33	-$328.07 million	($1.60)	-5.94

Humacyte has higher earnings, but lower revenue than Recursion Pharmaceuticals. Humacyte 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 and Volatility

Humacyte has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Humacyte and Recursion Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Humacyte	0	1	3	0	2.75
Recursion Pharmaceuticals	0	3	2	0	2.40

Humacyte presently has a consensus price target of $8.00, suggesting a potential upside of 13.80%. Recursion Pharmaceuticals has a consensus price target of $12.75, suggesting a potential upside of 34.07%. Given Recursion Pharmaceuticals’ higher probable upside, analysts clearly believe Recursion Pharmaceuticals is more favorable than Humacyte.

Summary

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

About Humacyte

Humacyte, Inc. engages in the development and manufacture of off-the-shelf, implantable, and bioengineered human tissues for the treatment of diseases and conditions across a range of anatomic locations in multiple therapeutic areas. The company using its proprietary and scientific technology platform to engineer and manufacture human acellular vessels (HAVs) to be implanted into patient without inducing a foreign body response or leading to immune rejection. It is developing a portfolio of HAVs, which would target the vascular repair, reconstruction, and replacement market, including vascular trauma; arteriovenous access for hemodialysis; peripheral arterial disease; pediatric heart surgery; and coronary artery bypass grafting, as well as for the delivery of cellular therapy, including pancreatic islet cell transplantation to treat Type 1 diabetes. The company was founded in 2004 and is headquartered in Durham, North Carolina.

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.