WallStSmart

Arcutis Biotherapeutics Inc (ARQT)vsAstraZeneca PLC (AZN)

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Smart Verdict

WallStSmart Research — data-driven comparison

AstraZeneca PLC generates 13126% more annual revenue ($61.37B vs $463.98M). AZN leads profitability with a 17.0% profit margin vs 6.2%. AZN trades at a lower P/E of 24.3x. AZN earns a higher WallStSmart Score of 60/100 (C+).

ARQT

Hold

47

out of 100

Grade: D+

Growth: 8.0Profit: 4.5Value: 5.7Quality: 5.0
Piotroski: 3/9Altman Z: -1.59

AZN

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 6.7Quality: 5.0
Piotroski: 6/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARQTUndervalued (+80.2%)

Margin of Safety

+80.2%

Fair Value

$134.15

Current Price

$23.89

$110.27 discount

UndervaluedFair: $134.15Overvalued
AZNUndervalued (+18.4%)

Margin of Safety

+18.4%

Fair Value

$196.10

Current Price

$160.17

$35.93 discount

UndervaluedFair: $196.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARQT1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
59.3%10/10

Revenue surging 59.3% year-over-year

AZN4 strengths · Avg: 8.8/10
Market CapQuality
$252.33B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$2.13B8/10

Generating 2.1B in free cash flow

Areas to Watch

ARQT4 concerns · Avg: 3.5/10
Price/BookValuation
13.6x4/10

Trading at 13.6x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
6.2%3/10

6.2% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

AZN2 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.5%4/10

2.5% earnings growth

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ARQT

The strongest argument for ARQT centers on Revenue Growth. Revenue growth of 59.3% demonstrates continued momentum.

Bull Case : AZN

The strongest argument for AZN centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.0% and operating margin at 23.5%. PEG of 1.28 suggests the stock is reasonably priced for its growth.

Bear Case : ARQT

The primary concerns for ARQT are Price/Book, EPS Growth, Profit Margin. A P/E of 108.6x leaves little room for execution misses.

Bear Case : AZN

The primary concerns for AZN are EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

ARQT profiles as a hypergrowth stock while AZN is a mature play — different risk/reward profiles.

ARQT carries more volatility with a beta of 1.50 — expect wider price swings.

ARQT is growing revenue faster at 59.3% — sustainability is the question.

AZN generates stronger free cash flow (2.1B), providing more financial flexibility.

Bottom Line

AZN scores higher overall (60/100 vs 47/100), backed by strong 17.0% margins. ARQT offers better value entry with a 80.2% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arcutis Biotherapeutics Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. The company is headquartered in Westlake Village, California.

AstraZeneca PLC

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

AstraZeneca PLC discovers, develops, manufactures and markets prescription drugs in the areas of oncology, cardiovascular, renal and metabolism, respiratory, infections, neuroscience and gastroenterology worldwide. The company is headquartered in Cambridge, the United Kingdom.

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