Arcutis Biotherapeutics Inc (ARQT)vsRoyalty Pharma Plc (RPRX)
ARQT
Arcutis Biotherapeutics Inc
$21.23
-3.28%
HEALTHCARE · Cap: $3.05B
RPRX
Royalty Pharma Plc
$55.02
-1.09%
HEALTHCARE · Cap: $31.60B
Smart Verdict
WallStSmart Research — data-driven comparison
Royalty Pharma Plc generates 487% more annual revenue ($2.44B vs $415.62M). RPRX leads profitability with a 33.9% profit margin vs -0.6%. RPRX earns a higher WallStSmart Score of 65/100 (C+).
ARQT
Avoid32
out of 100
Grade: F
RPRX
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+79.8%
Fair Value
$131.70
Current Price
$21.23
$110.47 discount
Margin of Safety
-59.6%
Fair Value
$34.38
Current Price
$55.02
$20.64 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 60.1% year-over-year
Conservative balance sheet, low leverage
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 100.3%
Earnings expanding 23.2% YoY
Areas to Watch
Trading at 14.0x book value
0.0% earnings growth
Weak financial health signals
ROE of -1.3% — below average capital efficiency
Expensive relative to growth rate
Moderate valuation
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ARQT
The strongest argument for ARQT centers on Revenue Growth, Debt/Equity. Revenue growth of 60.1% demonstrates continued momentum.
Bull Case : RPRX
The strongest argument for RPRX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 33.9% and operating margin at 100.3%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : ARQT
The primary concerns for ARQT are Price/Book, EPS Growth, Piotroski F-Score.
Bear Case : RPRX
The primary concerns for RPRX are PEG Ratio, P/E Ratio, Debt/Equity.
Key Dynamics to Monitor
ARQT profiles as a hypergrowth stock while RPRX is a mature play — different risk/reward profiles.
ARQT carries more volatility with a beta of 1.52 — expect wider price swings.
ARQT is growing revenue faster at 60.1% — sustainability is the question.
RPRX generates stronger free cash flow (761M), providing more financial flexibility.
Bottom Line
RPRX scores higher overall (65/100 vs 32/100), backed by strong 33.9% margins and 11.0% revenue growth. ARQT offers better value entry with a 79.8% 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.
Royalty Pharma Plc
HEALTHCARE · BIOTECHNOLOGY · USA
Royalty Pharma plc is a buyer of biopharmaceutical royalties and funder of innovations in the biopharmaceutical industry in the United States. The company is headquartered in New York, New York.
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