Arcutis Biotherapeutics Inc (ARQT)vsMerck & Company Inc (MRK)
ARQT
Arcutis Biotherapeutics Inc
$31.45
-0.73%
HEALTHCARE · Cap: $3.95B
MRK
Merck & Company Inc
$146.35
+3.83%
HEALTHCARE · Cap: $360.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 14247% more annual revenue ($66.57B vs $463.98M). ARQT leads profitability with a 6.2% profit margin vs 4.8%. MRK trades at a lower P/E of 115.8x. ARQT earns a higher WallStSmart Score of 45/100 (D).
ARQT
Hold45
out of 100
Grade: D
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+79.2%
Fair Value
$128.09
Current Price
$31.45
$96.64 discount
Margin of Safety
-73.7%
Fair Value
$83.64
Current Price
$146.35
$62.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 59.3% year-over-year
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Trading at 17.9x book value
0.0% earnings growth
6.2% margin — thin
Weak financial health signals
Trading at 8.6x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ARQT
The strongest argument for ARQT centers on Revenue Growth. Revenue growth of 59.3% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : ARQT
The primary concerns for ARQT are Price/Book, EPS Growth, Profit Margin. A P/E of 142.9x leaves little room for execution misses.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 115.8x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
ARQT profiles as a hypergrowth stock while MRK is a value play — different risk/reward profiles.
ARQT carries more volatility with a beta of 1.58 — expect wider price swings.
ARQT is growing revenue faster at 59.3% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
ARQT scores higher overall (45/100 vs 36/100) and 59.3% revenue growth. Both earn "Hold" 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.
Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
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