Arcutis Biotherapeutics Inc (ARQT)vsNovartis AG ADR (NVS)
ARQT
Arcutis Biotherapeutics Inc
$23.22
+3.80%
HEALTHCARE · Cap: $2.91B
NVS
Novartis AG ADR
$147.85
+3.44%
HEALTHCARE · Cap: $282.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 14944% more annual revenue ($56.58B vs $376.07M). NVS leads profitability with a 23.9% profit margin vs -4.3%. NVS earns a higher WallStSmart Score of 51/100 (C-).
ARQT
Hold36
out of 100
Grade: F
NVS
Buy51
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
-52.5%
Fair Value
$109.60
Current Price
$147.85
$38.25 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 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B 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
Expensive relative to growth rate
Grey zone — moderate risk
Revenue declined 0.7%
Earnings declined 9.3%
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 : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.9% and operating margin at 30.5%.
Bear Case : ARQT
The primary concerns for ARQT are Price/Book, EPS Growth, Return on Equity.
Bear Case : NVS
The primary concerns for NVS are PEG Ratio, Altman Z-Score, Revenue Growth.
Key Dynamics to Monitor
ARQT profiles as a hypergrowth stock while NVS is a declining 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.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
NVS scores higher overall (51/100 vs 36/100), backed by strong 23.9% 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.
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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