Comparing Recursion Pharmaceuticals (NASDAQ:RXRX) and Cullinan Therapeutics (NASDAQ:CGEM)

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

Volatility and Risk

Cullinan Therapeutics has a beta of -0.12, indicating that its share price is 112% less volatile than the S&P 500. Comparatively, Recursion Pharmaceuticals has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Cullinan Therapeutics and Recursion Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cullinan Therapeutics	0	0	6	0	3.00
Recursion Pharmaceuticals	0	2	2	0	2.50

Cullinan Therapeutics currently has a consensus price target of $32.00, suggesting a potential upside of 63.27%. Recursion Pharmaceuticals has a consensus price target of $12.67, suggesting a potential upside of 73.99%. Given Recursion Pharmaceuticals’ higher possible upside, analysts clearly believe Recursion Pharmaceuticals is more favorable than Cullinan Therapeutics.

Institutional & Insider Ownership

86.3% of Cullinan Therapeutics shares are owned by institutional investors. Comparatively, 89.1% of Recursion Pharmaceuticals shares are owned by institutional investors. 6.1% of Cullinan Therapeutics shares are owned by insiders. Comparatively, 15.8% 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cullinan Therapeutics	$18.94 million	59.64	-$153.16 million	($3.13)	-6.26
Recursion Pharmaceuticals	$48.62 million	35.59	-$328.07 million	($1.60)	-4.55

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cullinan Therapeutics	N/A	-28.65%	-27.14%
Recursion Pharmaceuticals	-755.37%	-79.47%	-57.28%

About Cullinan Therapeutics

Cullinan Therapeutics, Inc., a biopharmaceutical company, focuses on developing oncology therapies for cancer patients in the United States. The company's lead program comprises CLN-619, a monoclonal antibody that is in Phase I clinical trial for the treatment of solid tumors. Its development portfolio also includes CLN-049, a humanized bispecific antibody that is in Phase I clinical trial for the treatment of acute myeloid leukemia or myelodysplastic syndrome; CLN-418, a human bispecific immune activator that is in Phase 1 clinical trial for the treatment of multiple solid tumors; and Zipalertinib, a bioavailable small-molecule for treating patients with non-small cell lung cancer. In addition, the company's development products comprise CLN-617, a fusion protein for the treatment of solid tumors; and CLN-978, a T cell engaging antibody for the treatment relapsed/refractory B-cell non-Hodgkin lymphoma. It has license and collaboration agreement with Adimab, LLC to discover and/or optimize antibodies; Harbour BioMed US Inc. for the development, manufacturing, and commercialization of CLN-418; and co-development agreement with Taiho Pharmaceutical Co., Ltd to develop Zipalertinib. Cullinan Therapeutics, Inc. was formerly known as Cullinan Oncology, Inc. and changed its name to Cullinan Therapeutics, Inc. in April 2024. Cullinan Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, 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.