Werewolf Therapeutics (NASDAQ:HOWL) and Recursion Pharmaceuticals (NASDAQ:RXRX) Head-To-Head Analysis

Werewolf Therapeutics (NASDAQ:HOWL) and Recursion Pharmaceuticals (NASDAQ:RXRX) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Werewolf Therapeutics	$1.88 million	25.10	-$60.82 million	($0.76)	-1.28
Recursion Pharmaceuticals	$74.68 million	27.35	-$644.76 million	($1.04)	-3.67

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

Institutional and Insider Ownership

64.8% of Werewolf Therapeutics shares are held by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are held by institutional investors. 23.6% of Werewolf Therapeutics 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.

Analyst Recommendations

This is a summary of recent recommendations for Werewolf Therapeutics and Recursion Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Werewolf Therapeutics	1	4	2	0	2.14
Recursion Pharmaceuticals	1	2	2	0	2.20

Werewolf Therapeutics currently has a consensus target price of $4.00, suggesting a potential upside of 311.95%. Recursion Pharmaceuticals has a consensus target price of $8.06, suggesting a potential upside of 111.27%. Given Werewolf Therapeutics’ higher probable upside, equities research analysts clearly believe Werewolf Therapeutics is more favorable than Recursion Pharmaceuticals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Werewolf Therapeutics	N/A	-166.99%	-59.88%
Recursion Pharmaceuticals	-945.94%	-50.41%	-38.25%

Volatility & Risk

Werewolf Therapeutics has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Summary

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

About Werewolf Therapeutics

Werewolf Therapeutics, Inc., a biopharmaceutical company, develops therapeutics engineered to stimulate the body's immune system for the treatment of cancer. The company, through its proprietary PREDATOR platform, designs conditionally activated molecules that stimulate adaptive and innate immunity for addressing the limitations of conventional proinflammatory immune therapies. Its lead product candidates are WTX-124, a conditionally activated Interleukin-2 INDUKINE molecule that is in Phase I/Ib clinical trial for the treatment of advanced or metastatic solid tumors; and WTX-330, a conditionally activated Interleukin-12 INDUKINE molecule, which is in Phase I clinical trial for the treatment of advanced or metastatic solid tumors and lymphoma. The company is also developing JZP898, a conditionally activated interferon alpha INDUKINE molecule for the treatment of cancer; and WTX-712, an activated Interleukin-21(IL-21) and WTX-518, an activated IL-18 (IL-18) INDUKINE molecule for the treatment of cancer. Werewolf Therapeutics, Inc. was incorporated in 2017 and is headquartered in Watertown, Massachusetts.

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.