Head-To-Head Comparison: Turnstone Biologics (NASDAQ:TSBX) vs. Recursion Pharmaceuticals (NASDAQ:RXRX)

Recursion Pharmaceuticals (NASDAQ:RXRX) and Turnstone Biologics (NASDAQ:TSBX) 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, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

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

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

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

Profitability

This table compares Recursion Pharmaceuticals and Turnstone Biologics’ 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%
Turnstone Biologics	N/A	-85.18%	-72.25%

Earnings & Valuation

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

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

Turnstone Biologics has lower revenue, but higher earnings 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.

Risk & Volatility

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

Insider and Institutional Ownership

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

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 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.