Arcutis Biotherapeutics, Inc. (ARQT) vs Edgewise Therapeutics, Inc. (EWTX)

Arcutis Biotherapeutics, Inc. and Edgewise Therapeutics, Inc. are both Biotechnology companies. Edgewise Therapeutics, Inc. is the larger, with a market value of $4.2B against $3.7B — 1.1× the size. Edgewise Therapeutics, Inc. has negative trailing earnings, so its P/E is not meaningful; Arcutis Biotherapeutics, Inc. trades at 131×. Arcutis Biotherapeutics, Inc. has the higher net margin (6.15% vs 0.00%) and the higher return on invested capital (23.6% vs 0.00%). Across the 14 metrics below, Arcutis Biotherapeutics, Inc. leads on 10 and Edgewise Therapeutics, Inc. on 4.

Valuation

Metric ARQT EWTX Biotechnology median
P/E 131.00 n/m 8.50
P/S 8.11 n/m 9.71
P/B 17.05 8.94 2.13
Price to free cash flow 156.26 n/m 20.82
EV/EBITDA 102.13 n/m 0.64
EV/Sales 7.83 n/m 9.21
Earnings yield 0.76% (4.97%) (33.15%)
Free cash flow yield 0.64% (3.97%) (25.50%)

Profitability

Metric ARQT EWTX Biotechnology median
Gross margin 91.14% 0.00% 65.16%
Operating margin 7.38% 0.00% 0.00%
Net margin 6.15% 0.00% 0.00%
Free cash flow margin 8.42% 0.00% 0.00%
Return on equity 15.86% (38.03%) (56.36%)
Return on assets 6.78% (36.09%) (48.04%)
Return on invested capital 23.62% 0.00% 0.00%

Growth

Metric ARQT EWTX Biotechnology median
Revenue growth (TTM) 76.11% — 6.02%
EPS growth (last fiscal year) 88.79% (12.41%) 30.26%
Revenue growth, 5-year CAGR — — 9.41%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARQT EWTX Biotechnology median
Debt to equity 0.49 0.00 0.00
Current ratio 2.92 16.24 4.72
Net debt to EBITDA 11.64 2.69 0.96

Dividend

Metric ARQT EWTX Biotechnology median
Dividend yield — — 0.09%
Payout ratio — — —

Size

Metric ARQT EWTX Biotechnology median
Market cap 3.66b 4.15b 135.18m

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