WallStSmart

Arrowhead Pharmaceuticals Inc (ARWR)vsInsmed Inc (INSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arrowhead Pharmaceuticals Inc generates 80% more annual revenue ($1.09B vs $606.42M). ARWR leads profitability with a 18.5% profit margin vs -2.1%. ARWR earns a higher WallStSmart Score of 58/100 (C).

ARWR

Buy

58

out of 100

Grade: C

Growth: 8.7Profit: 8.5Value: 5.7Quality: 5.8
Piotroski: 4/9Altman Z: 0.27

INSM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 2.0Value: 6.7Quality: 6.3
Piotroski: 6/9Altman Z: -3.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARWRSignificantly Overvalued (-71.1%)

Margin of Safety

-71.1%

Fair Value

$35.97

Current Price

$60.77

$24.80 premium

UndervaluedFair: $35.97Overvalued

Intrinsic value data unavailable for INSM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARWR2 strengths · Avg: 10.0/10
Return on EquityProfitability
75.5%10/10

Every $100 of equity generates 76 in profit

Revenue GrowthGrowth
104.6%10/10

Revenue surging 104.6% year-over-year

INSM0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

ARWR3 concerns · Avg: 3.3/10
P/E RatioValuation
38.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
14.7x4/10

Trading at 14.7x book value

Altman Z-ScoreHealth
0.272/10

Distress zone — elevated risk

INSM4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
43.0x2/10

Trading at 43.0x book value

Return on EquityProfitability
-2.5%2/10

ROE of -2.5% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : ARWR

The strongest argument for ARWR centers on Return on Equity, Revenue Growth. Profitability is solid with margins at 18.5% and operating margin at 15.5%. Revenue growth of 104.6% demonstrates continued momentum.

Bull Case : INSM

PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bear Case : ARWR

The primary concerns for ARWR are P/E Ratio, Price/Book, Altman Z-Score.

Bear Case : INSM

The primary concerns for INSM are Revenue Growth, EPS Growth, Price/Book.

Key Dynamics to Monitor

ARWR profiles as a growth stock while INSM is a turnaround play — different risk/reward profiles.

ARWR carries more volatility with a beta of 1.30 — expect wider price swings.

ARWR is growing revenue faster at 104.6% — sustainability is the question.

ARWR generates stronger free cash flow (11M), providing more financial flexibility.

Bottom Line

ARWR scores higher overall (58/100 vs 39/100), backed by strong 18.5% margins and 104.6% revenue growth. 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.

Arrowhead Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Arrowhead Pharmaceuticals, Inc. develops drugs for the treatment of intractable diseases in the United States. The company is headquartered in Pasadena, California.

Insmed Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Insmed Incorporated, a biopharmaceutical company, develops and markets therapies for patients with rare and serious diseases. The company is headquartered in Bridgewater, New Jersey.

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