Recursion Pharmaceuticals (NASDAQ:RXRX – Get Free Report) and Omega Therapeutics (NASDAQ:OMGA – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Risk and Volatility
Recursion Pharmaceuticals has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Omega Therapeutics has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.
Profitability
This table compares Recursion Pharmaceuticals and Omega Therapeutics’ 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% |
| Omega Therapeutics | -902.93% | -213.13% | -41.24% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Recursion Pharmaceuticals | $58.49 million | 36.36 | -$328.07 million | ($1.66) | -3.19 |
| Omega Therapeutics | $8.10 million | 0.85 | -$97.43 million | ($1.33) | -0.09 |
Omega Therapeutics has lower revenue, but higher earnings than Recursion Pharmaceuticals. Recursion Pharmaceuticals is trading at a lower price-to-earnings ratio than Omega Therapeutics, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
89.1% of Recursion Pharmaceuticals shares are held by institutional investors. Comparatively, 97.5% of Omega Therapeutics shares are held by institutional investors. 15.8% of Recursion Pharmaceuticals shares are held by insiders. Comparatively, 8.5% of Omega Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Recursion Pharmaceuticals and Omega Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Recursion Pharmaceuticals | 0 | 3 | 2 | 0 | 2.40 |
| Omega Therapeutics | 0 | 1 | 4 | 0 | 2.80 |
Recursion Pharmaceuticals presently has a consensus target price of $8.25, indicating a potential upside of 55.95%. Omega Therapeutics has a consensus target price of $9.20, indicating a potential upside of 7,260.00%. Given Omega Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Omega Therapeutics is more favorable than Recursion Pharmaceuticals.
Summary
Omega Therapeutics beats Recursion Pharmaceuticals on 9 of the 14 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 Omega Therapeutics
Omega Therapeutics, Inc. operates as a clinical-stage biotechnology company. The company's OMEGA platform enables control of fundamental epigenetic processes to correct the root cause of disease by restoring aberrant gene expression to a range without altering native nucleic acid sequences. It also develops OTX-2002 for hepatocellular carcinoma; OTX-2101 for non-small cell lung cancer; omega epigenomic controllers (OEC) for inflammatory lung diseases, such as neutrophilic asthma, acute respiratory distress syndrome, dermatological, oncology, and rheumatological indications; OEC candidates for idiopathic pulmonary fibrosis; liver regeneration medicines; and OEC candidates for patients with diabetes and other conditions to treat corneal epithelial injury. In addition, the company develops OEC candidates for the treatment of alopecia, a disorder characterized by patches of non-scarring hair loss affecting the scalp and body. Omega Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.
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