Recursion Pharmaceuticals (NASDAQ:RXRX) and Protara Therapeutics (NASDAQ:TARA) Head to Head Survey

Recursion Pharmaceuticals (NASDAQ:RXRX) and Protara Therapeutics (NASDAQ:TARA) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. Comparatively, 38.1% of Protara Therapeutics shares are owned by institutional investors. 8.4% of Recursion Pharmaceuticals shares are owned by insiders. Comparatively, 7.6% of Protara Therapeutics shares are owned 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.

Earnings and Valuation

This table compares Recursion Pharmaceuticals and Protara Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recursion Pharmaceuticals	$74.68 million	23.56	-$644.76 million	($1.20)	-2.77
Protara Therapeutics	N/A	N/A	-$57.44 million	($1.34)	-3.10

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Recursion Pharmaceuticals and Protara Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	1	2	2	0	2.20
Protara Therapeutics	1	0	7	0	2.75

Recursion Pharmaceuticals presently has a consensus price target of $8.10, indicating a potential upside of 143.98%. Protara Therapeutics has a consensus price target of $26.25, indicating a potential upside of 531.01%. Given Protara Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Protara Therapeutics is more favorable than Recursion Pharmaceuticals.

Risk & Volatility

Recursion Pharmaceuticals has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Protara Therapeutics has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Profitability

This table compares Recursion Pharmaceuticals and Protara Therapeutics’ 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%
Protara Therapeutics	N/A	-38.70%	-36.02%

Summary

Protara Therapeutics beats Recursion Pharmaceuticals on 8 of the 13 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 Protara Therapeutics

Protara Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in advancing transformative therapies for the treatment of cancer and rare diseases. The company's lead program is TARA-002, an investigational cell therapy, which is in Phase II clinical trial for the treatment of non-muscle invasive bladder cancer and lymphatic malformations. It is also developing intravenous choline chloride, an investigational phospholipid substrate replacement therapy that is in Phase II clinical trial for patients receiving parenteral nutrition. The company is headquartered in New York, New York.