Financial Comparison: Recursion Pharmaceuticals (NASDAQ:RXRX) versus Cullinan Therapeutics (NASDAQ:CGEM)

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

Analyst Recommendations

This is a summary of recent ratings for Recursion Pharmaceuticals and Cullinan Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recursion Pharmaceuticals	0	2	2	0	2.50
Cullinan Therapeutics	0	0	6	0	3.00

Recursion Pharmaceuticals presently has a consensus target price of $12.67, suggesting a potential upside of 62.19%. Cullinan Therapeutics has a consensus target price of $32.00, suggesting a potential upside of 77.48%. Given Cullinan Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Cullinan Therapeutics is more favorable than Recursion Pharmaceuticals.

Insider & Institutional Ownership

89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. Comparatively, 86.3% of Cullinan Therapeutics shares are owned by institutional investors. 15.8% of Recursion Pharmaceuticals shares are owned by insiders. Comparatively, 6.1% of Cullinan Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Recursion Pharmaceuticals has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Cullinan Therapeutics has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500.

Valuation and Earnings

This table compares Recursion Pharmaceuticals and Cullinan Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recursion Pharmaceuticals	$48.62 million	38.18	-$328.07 million	($1.60)	-4.88
Cullinan Therapeutics	$18.94 million	54.86	-$153.16 million	($3.13)	-5.76

Cullinan Therapeutics has lower revenue, but higher earnings than Recursion Pharmaceuticals. Cullinan 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.

Profitability

This table compares Recursion Pharmaceuticals and Cullinan Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recursion Pharmaceuticals	-755.37%	-79.47%	-57.28%
Cullinan Therapeutics	N/A	-28.65%	-27.14%

Summary

Cullinan Therapeutics beats Recursion Pharmaceuticals on 8 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 Cullinan Therapeutics

Cullinan Therapeutics, Inc., a biopharmaceutical company, focuses on developing oncology therapies for cancer patients in the United States. The company's lead program comprises CLN-619, a monoclonal antibody that is in Phase I clinical trial for the treatment of solid tumors. Its development portfolio also includes CLN-049, a humanized bispecific antibody that is in Phase I clinical trial for the treatment of acute myeloid leukemia or myelodysplastic syndrome; CLN-418, a human bispecific immune activator that is in Phase 1 clinical trial for the treatment of multiple solid tumors; and Zipalertinib, a bioavailable small-molecule for treating patients with non-small cell lung cancer. In addition, the company's development products comprise CLN-617, a fusion protein for the treatment of solid tumors; and CLN-978, a T cell engaging antibody for the treatment relapsed/refractory B-cell non-Hodgkin lymphoma. It has license and collaboration agreement with Adimab, LLC to discover and/or optimize antibodies; Harbour BioMed US Inc. for the development, manufacturing, and commercialization of CLN-418; and co-development agreement with Taiho Pharmaceutical Co., Ltd to develop Zipalertinib. Cullinan Therapeutics, Inc. was formerly known as Cullinan Oncology, Inc. and changed its name to Cullinan Therapeutics, Inc. in April 2024. Cullinan Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.