Critical Survey: Recursion Pharmaceuticals (NASDAQ:RXRX) and Aptose Biosciences (NASDAQ:APTO)

Aptose Biosciences (NASDAQ:APTOGet Rating) and Recursion Pharmaceuticals (NASDAQ:RXRXGet Rating) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Insider and Institutional Ownership

27.2% of Aptose Biosciences shares are held by institutional investors. Comparatively, 54.2% of Recursion Pharmaceuticals shares are held by institutional investors. 10.9% of Aptose Biosciences shares are held by insiders. Comparatively, 22.3% of Recursion Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Aptose Biosciences and Recursion Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aptose Biosciences 0 0 4 0 3.00
Recursion Pharmaceuticals 0 3 1 0 2.25

Aptose Biosciences currently has a consensus target price of $7.75, suggesting a potential upside of 1,087.38%. Recursion Pharmaceuticals has a consensus target price of $12.00, suggesting a potential upside of 29.31%. Given Aptose Biosciences’ stronger consensus rating and higher probable upside, analysts plainly believe Aptose Biosciences is more favorable than Recursion Pharmaceuticals.

Volatility and Risk

Aptose Biosciences has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of -0.6, indicating that its stock price is 160% less volatile than the S&P 500.

Earnings & Valuation

This table compares Aptose Biosciences and Recursion Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aptose Biosciences N/A N/A -$65.35 million ($0.61) -1.07
Recursion Pharmaceuticals $10.18 million 172.80 -$186.48 million ($1.44) -6.44

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

Profitability

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

Net Margins Return on Equity Return on Assets
Aptose Biosciences N/A -92.87% -81.08%
Recursion Pharmaceuticals -860.34% -53.04% -37.57%

Summary

Aptose Biosciences beats Recursion Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

About Aptose Biosciences

(Get Rating)

Aptose Biosciences Inc., a clinical-stage biotechnology company, discovers and develops personalized therapies addressing unmet medical needs in oncology in Canada. Its lead clinical program is APTO-253, which is a Phase I clinical trial for the treatment of patients with relapsed or refractory hematologic malignancies. The company has an agreement with CrystalGenomics, Inc. to research, develop, and commercialize CG026806, a non-covalent small molecule therapeutic agent, which is in preclinical stage for the treatment of acute myeloid leukemia and chronic lymphocytic leukemia/mantle cell lymphoma. The company was formerly known as Lorus Therapeutics Inc. and changed its name to Aptose Biosciences Inc. in August 2014. Aptose Biosciences Inc. was founded in 1986 and is headquartered in Mississauga, Canada.

About Recursion Pharmaceuticals

(Get Rating)

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 IIa clinical trial to treat cerebral cavernous malformation; REC-2282 for the treatment of neurofibromatosis type 2; REC-4881 to treat familial adenomatous polyposis; and REC-3599, which is in Phase I clinical trial to treat GM2 gangliosidosis. Its preclinical stage product includes REC-3964 to treat Clostridium difficile colitis; REC-64917 for the treat of neural or systemic inflammation; REC-65029 to treat HRD-negative ovarian cancer; REC-648918 to enhance anti-tumor immune; REC-2029 for the treatment of wnt-mutant hepatocellular carcinoma; REC-14221 to treat solid and hematological malignancies; and REC-64151 for the treatment of immune checkpoint resistance in KRAS/STK11 mutant non-small cell lung cancer. The company has collaboration and agreement with Bayer AG; the University of Utah Research Foundation; Ohio State Innovation Foundation; Chromaderm, Inc.; and Takeda Pharmaceutical Company Limited. Recursion Pharmaceuticals, Inc. was incorporated in 2013 and is headquartered in Salt Lake City, Utah.

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