Contrasting Recursion Pharmaceuticals (NASDAQ:RXRX) and Genetic Technologies (NASDAQ:GENE)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Recursion Pharmaceuticals and Genetic Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	0	4	2	0	2.33
Genetic Technologies	0	0	0	0	0.00

Recursion Pharmaceuticals currently has a consensus price target of $7.60, indicating a potential upside of 70.79%. Given Recursion Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts clearly believe Recursion Pharmaceuticals is more favorable than Genetic Technologies.

Risk & Volatility

Recursion Pharmaceuticals has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Genetic Technologies has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Earnings and Valuation

This table compares Recursion Pharmaceuticals and Genetic Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recursion Pharmaceuticals	$59.82 million	30.24	-$328.07 million	($1.77)	-2.51
Genetic Technologies	$7.66 million	0.44	-$7.88 million	N/A	N/A

Genetic Technologies has lower revenue, but higher earnings than Recursion Pharmaceuticals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Recursion Pharmaceuticals	-579.52%	-76.56%	-55.68%
Genetic Technologies	N/A	N/A	N/A

Insider and Institutional Ownership

89.1% of Recursion Pharmaceuticals shares are held by institutional investors. Comparatively, 0.6% of Genetic Technologies shares are held by institutional investors. 15.8% of Recursion Pharmaceuticals shares are held by company insiders. Comparatively, 6.5% of Genetic Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Recursion Pharmaceuticals beats Genetic Technologies on 7 of the 12 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 Genetic Technologies

Genetic Technologies Limited, a molecular diagnostics company, provides predictive genetic testing and risk assessment tools to help physicians manage people's health in the America, Canada, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. It operates through AffinityDNA, EasyDNA, and GeneType/Corporate segments. The company offers BREVAGenplus, a clinically validated risk assessment test for non-hereditary breast cancer. It also markets BREVAGenplus to healthcare professionals in breast health care and imaging centers, as well as to obstetricians/gynecologists and breast cancer risk assessment specialists, such as breast surgeons. In addition, the company offers various cancer risk assessment tests under the GeneType for Colorectal Cancer and GeneType for Breast Cancer brand names; and develops other risk assessment tests across a range of diseases, which include colorectal cancer, ovarian cancer, prostate cancer, coronary artery, type 2 diabetes, pancreatic cancer, melanoma, and atrial fibrillation. Further, it offers genetic testing services, including medical, animal, forensic, and plant testing. The company has research and collaboration agreements with the University of Melbourne for the development and commercialization of a novel colorectal cancer risk assessment test; and Memorial Sloan Kettering Cancer Center of New York and University of Cambridge, that assess the conflict among BRCA mutation carriers considering preventive surgery. Genetic Technologies Limited was incorporated in 1987 and is headquartered in Fitzroy, Australia.