Recursion Pharmaceuticals (NASDAQ:RXRX) vs. Senti Biosciences (NASDAQ:SNTI) Critical Review

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

Valuation & Earnings

This table compares Senti Biosciences and Recursion Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Senti Biosciences	$255,000.00	39.15	-$71.06 million	($12.65)	-0.17
Recursion Pharmaceuticals	$48.62 million	37.00	-$328.07 million	($1.62)	-3.95

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Senti Biosciences	N/A	-84.70%	-48.10%
Recursion Pharmaceuticals	-755.37%	-79.47%	-57.28%

Risk & Volatility

Senti Biosciences has a beta of 2.74, meaning that its share price is 174% more volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Senti Biosciences and Recursion Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Senti Biosciences	0	0	0	0	N/A
Recursion Pharmaceuticals	0	4	2	0	2.33

Recursion Pharmaceuticals has a consensus target price of $9.40, indicating a potential upside of 46.88%. Given Recursion Pharmaceuticals’ higher probable upside, analysts plainly believe Recursion Pharmaceuticals is more favorable than Senti Biosciences.

Institutional and Insider Ownership

25.7% of Senti Biosciences shares are held by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are held by institutional investors. 15.9% of Senti Biosciences shares are held by insiders. Comparatively, 15.8% of Recursion Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

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

About Senti Biosciences

Senti Biosciences, Inc. operates as a preclinical biotechnology company that develops next-generation cell and gene therapies engineered with its gene circuit platform technologies for various diseases. Its lead product candidates utilize allogeneic chimeric antigen receptor natural killer (CAR-NK) cells outfitted with its gene circuit technologies in various oncology indications. The company product candidates include SENTI-202, a Logic Gated OR+NOT off-the-shelf CAR-NK cell therapy designed to target and eliminate cancer cells while sparing the healthy bone marrow; and SENTI-301A for the treatment of hepatocellular carcinoma. It also develops SENTI-401, a Logic Gated off-the-shelf CAR-NK cell therapy designed to target and eliminate colorectal cancer/CRC cells. In addition, the company develops Tumor-Associated Antigen and Protective Antigen Paired Discovery Platform to select and validate NOT GATE antigen candidates and identify tumor-associated antigens in cancer cells. The company has a strategic collaboration with Celest Therapeutics (Shanghai) Co. Ltd for the clinical development of SENTI-301A to treat solid tumors. Senti Biosciences, Inc. was incorporated in 2016 and is headquartered in South San Francisco, 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.