Comparing Recursion Pharmaceuticals (NASDAQ:RXRX) and Cardiff Oncology (NASDAQ:CRDF)

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

Insider & Institutional Ownership

89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. Comparatively, 16.3% of Cardiff Oncology shares are owned by institutional investors. 15.8% of Recursion Pharmaceuticals shares are owned by company insiders. Comparatively, 7.8% of Cardiff Oncology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Recursion Pharmaceuticals and Cardiff Oncology’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recursion Pharmaceuticals	$44.58 million	44.51	-$328.07 million	($1.60)	-5.22
Cardiff Oncology	$490,000.00	213.56	-$41.44 million	($0.90)	-2.60

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Recursion Pharmaceuticals and Cardiff Oncology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	0	2	2	0	2.50
Cardiff Oncology	0	0	2	0	3.00

Recursion Pharmaceuticals presently has a consensus target price of $13.00, indicating a potential upside of 55.69%. Cardiff Oncology has a consensus target price of $10.50, indicating a potential upside of 348.72%. Given Cardiff Oncology’s stronger consensus rating and higher possible upside, analysts clearly believe Cardiff Oncology is more favorable than Recursion Pharmaceuticals.

Risk and Volatility

Recursion Pharmaceuticals has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Cardiff Oncology has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500.

Profitability

This table compares Recursion Pharmaceuticals and Cardiff Oncology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recursion Pharmaceuticals	-765.90%	-79.96%	-56.45%
Cardiff Oncology	-6,594.92%	-54.54%	-47.11%

Summary

Cardiff Oncology beats Recursion Pharmaceuticals on 8 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 Cardiff Oncology

Cardiff Oncology, Inc., a clinical-stage biotechnology company, develops novel therapies to treat various cancers in California. Its lead drug candidate is onvansertib, an oral selective Polo-like Kinase 1 Inhibitor to treatment a range of solid tumor cancers and KRAS/NRAS-mutated metastatic colorectal and metastatic pancreatic cancer, as well as investigator-initiated trials in triple negative breast cancer and small cell lung cancer; and TROV-054 is a Phase 1b/2 for FOLFIRI and bevacizumab. The company primarily serves pharmaceutical manufacturers. The company was formerly known as Trovagene, Inc. and changed its name to Cardiff Oncology, Inc. in May 2012. Cardiff Oncology, Inc. was incorporated in 1999 and is headquartered in San Diego, California.