Arcutis Biotherapeutics Inc (ARQT)vsNovartis AG ADR (NVS)
ARQT
Arcutis Biotherapeutics Inc
$27.86
-1.97%
HEALTHCARE · Cap: $3.56B
NVS
Novartis AG ADR
$158.83
-0.25%
HEALTHCARE · Cap: $290.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 13540% more annual revenue ($56.69B vs $415.62M). NVS leads profitability with a 22.5% profit margin vs -0.6%. NVS earns a higher WallStSmart Score of 51/100 (C-).
ARQT
Avoid30
out of 100
Grade: F
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+78.8%
Fair Value
$125.21
Current Price
$27.86
$97.35 discount
Margin of Safety
-68.7%
Fair Value
$92.54
Current Price
$158.83
$66.29 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 60.1% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 31.8%
Keeps 23 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Areas to Watch
Trading at 18.3x book value
0.0% earnings growth
Weak financial health signals
ROE of -1.3% — below average capital efficiency
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ARQT
The strongest argument for ARQT centers on Revenue Growth. Revenue growth of 60.1% demonstrates continued momentum.
Bull Case : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 22.5% and operating margin at 31.8%.
Bear Case : ARQT
The primary concerns for ARQT are Price/Book, EPS Growth, Piotroski F-Score.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
ARQT profiles as a hypergrowth stock while NVS is a value play — different risk/reward profiles.
ARQT carries more volatility with a beta of 1.48 — expect wider price swings.
ARQT is growing revenue faster at 60.1% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
NVS scores higher overall (51/100 vs 30/100), backed by strong 22.5% margins. ARQT offers better value entry with a 78.8% margin of safety. Both earn "Buy" and "Avoid" 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.
Novartis AG ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.
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