Contrasting Recursion Pharmaceuticals (NASDAQ:RXRX) & Traws Pharma (NASDAQ:TRAW)

Traws Pharma (NASDAQ:TRAW) and Recursion Pharmaceuticals (NASDAQ:RXRX) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Volatility & Risk

Traws Pharma has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Earnings & Valuation

This table compares Traws Pharma and Recursion Pharmaceuticals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traws Pharma	$2.90 million	4.65	-$166.52 million	$88.83	0.02
Recursion Pharmaceuticals	$58.84 million	35.64	-$463.66 million	($1.78)	-2.71

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

Analyst Ratings

This is a summary of current recommendations for Traws Pharma and Recursion Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traws Pharma	0	0	0	0	0.00
Recursion Pharmaceuticals	0	3	2	0	2.40

Recursion Pharmaceuticals has a consensus target price of $7.25, suggesting a potential upside of 50.10%. Given Recursion Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Recursion Pharmaceuticals is more favorable than Traws Pharma.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Traws Pharma	3,028.25%	-1,812.48%	512.72%
Recursion Pharmaceuticals	-1,004.91%	-76.09%	-54.29%

Institutional & Insider Ownership

7.9% of Traws Pharma shares are owned by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. 13.6% of Traws Pharma shares are owned by insiders. Comparatively, 8.4% of Recursion Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

About Traws Pharma

Traws Pharma, Inc., a clinical stage biopharmaceutical company, focuses on developing small molecule oral product candidates for respiratory viral diseases and cancer. The company is developing investigational novel therapies for influenza and COVID19 that are designed to address treatment resistance, such as TRX01 (travatrelvir), a Mpro/3CL inhibitor in development for the treatment of COVID19; and TRX100 (viroxavir), an endonuclease inhibitor in development for the treatment of pandemic influenza. It is also developing narazaciclib, a multi-kinase CDK4/6 inhibitor, which is in Phase 1/2 clinical trials in patients with cancer, with or without co-administration of letrozole to define the recommended phase 2 dose for further development in endometrial cancer; and oral rigosertib, which is administered alone or in combination for investigation in various cancers. The company was formerly known as Onconova Therapeutics, Inc. and changed its name to Traws Pharma, Inc. in April 2024. Traws Pharma, Inc. was incorporated in 1998 and is headquartered in Newtown, Pennsylvania.

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.