Analyzing Recursion Pharmaceuticals (NASDAQ:RXRX) & Turnstone Biologics (NASDAQ:TSBX)

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

Insider & Institutional Ownership

52.5% of Turnstone Biologics shares are held by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are held by institutional investors. 32.1% of Turnstone Biologics shares are held by company insiders. Comparatively, 15.8% of Recursion Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Turnstone Biologics and Recursion Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turnstone Biologics	0	1	1	0	2.50
Recursion Pharmaceuticals	0	4	2	0	2.33

Turnstone Biologics presently has a consensus price target of $2.13, suggesting a potential upside of 334.47%. Recursion Pharmaceuticals has a consensus price target of $9.40, suggesting a potential upside of 35.45%. Given Turnstone Biologics’ stronger consensus rating and higher possible upside, analysts clearly believe Turnstone Biologics is more favorable than Recursion Pharmaceuticals.

Risk & Volatility

Turnstone Biologics has a beta of 2.26, suggesting that its stock price is 126% more volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Valuation and Earnings

This table compares Turnstone Biologics and Recursion Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Turnstone Biologics	$19.31 million	0.59	-$55.20 million	($10.14)	-0.05
Recursion Pharmaceuticals	$48.62 million	33.92	-$328.07 million	($1.60)	-4.34

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Turnstone Biologics	N/A	-85.18%	-72.25%
Recursion Pharmaceuticals	-755.37%	-79.47%	-57.28%

About Turnstone Biologics

Turnstone Biologics Corp., a clinical stage biotechnology company, focuses on developing medicines to treat and cure patients with solid tumors. The company's lead product includes TIDAL-01 that is in Phase 1 clinical trials for the treatment of breast cancer, colorectal cancer, head and neck cancer and uveal melanoma, as well as an investigator sponsored trials to treat colorectal cancer, head and neck cancer, and cutaneous and non-cutaneous melanomas. It is also developing TIDAL-02, which is in preclinical development for the treatment of solid tumors. The company was founded in 2014 and is based in LA Jolla, California.

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.