Arcutis Biotherapeutics Inc (ARQT)vsMerck & Company Inc (MRK)
ARQT
Arcutis Biotherapeutics Inc
$23.22
+3.80%
HEALTHCARE · Cap: $2.91B
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 17187% more annual revenue ($65.01B vs $376.07M). MRK leads profitability with a 28.1% profit margin vs -4.3%. MRK earns a higher WallStSmart Score of 59/100 (C).
ARQT
Hold36
out of 100
Grade: F
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.2%
Fair Value
$134.09
Current Price
$23.22
$110.87 discount
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 81.5% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
Trading at 15.1x book value
0.0% earnings growth
ROE of -9.3% — below average capital efficiency
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ARQT
The strongest argument for ARQT centers on Revenue Growth. Revenue growth of 81.5% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bear Case : ARQT
The primary concerns for ARQT are Price/Book, EPS Growth, Return on Equity.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
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 1.77 — expect wider price swings.
ARQT is growing revenue faster at 81.5% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (59/100 vs 36/100), backed by strong 28.1% 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.
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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