Financial Survey: Recursion Pharmaceuticals (NASDAQ:RXRX) vs. BioCardia (NASDAQ:BCDA)

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

Earnings & Valuation

This table compares BioCardia and Recursion Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BioCardia	N/A	N/A	-$8.23 million	($0.64)	-1.69
Recursion Pharmaceuticals	$53.94 million	31.76	-$644.76 million	($1.04)	-3.08

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

Volatility and Risk

BioCardia has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for BioCardia and Recursion Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BioCardia	1	1	1	0	2.00
Recursion Pharmaceuticals	1	2	2	0	2.20

BioCardia currently has a consensus target price of $25.00, suggesting a potential upside of 2,214.81%. Recursion Pharmaceuticals has a consensus target price of $8.06, suggesting a potential upside of 151.87%. Given BioCardia’s higher possible upside, equities analysts clearly believe BioCardia is more favorable than Recursion Pharmaceuticals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BioCardia	N/A	-569.36%	-183.15%
Recursion Pharmaceuticals	-945.94%	-50.41%	-38.25%

Institutional & Insider Ownership

20.6% of BioCardia shares are held by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are held by institutional investors. 17.4% of BioCardia shares are held by insiders. Comparatively, 6.7% of Recursion Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Recursion Pharmaceuticals beats BioCardia on 7 of the 13 factors compared between the two stocks.

About BioCardia

BioCardia, Inc., a clinical-stage regenerative medicine company, develops cellular and cell-derived therapeutics for cardiovascular and pulmonary diseases in the United States. Its lead product candidate is CardiAMP, an autologous mononuclear cell therapy system in Phase III clinical trial for the treatment of ischemic heart failure with reduced ejection fraction and refractory angina resulting from chronic myocardial ischemia. The company is also developing an allogeneic cells therapy platform, which is an investigational culture expanded bone marrow derived mesenchymal cell therapy in Phase I/II trial to treat ischemic heart failure and acute respiratory distress syndrome. In addition, it offers the Helix biotherapeutic delivery system for minimally invasive targeted delivery of biologic agents to the heart; and Morph deflectable guides and sheaths. The company has collaboration agreements with CellProthera in the development of ProtheraCytes, which is currently under Phase II trial for the treatment of acute myocardial infarction. BioCardia, Inc. is based in Sunnyvale, 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.