Arcutis Biotherapeutics, Inc. (ARQT) vs Disc Medicine, Inc. (IRON)

Arcutis Biotherapeutics, Inc. and Disc Medicine, Inc. are both Biotechnology companies. Arcutis Biotherapeutics, Inc. and Disc Medicine, Inc. are of similar size ($3.5B and $3.4B). Disc Medicine, Inc. has negative trailing earnings, so its P/E is not meaningful; Arcutis Biotherapeutics, Inc. trades at 112×. Arcutis Biotherapeutics, Inc. has the higher net margin (5.88% vs 0.00%) and the higher return on invested capital (23.5% vs 0.00%). Across the 14 metrics below, Arcutis Biotherapeutics, Inc. leads on 10 and Disc Medicine, Inc. on 4.

Valuation

Metric ARQT IRON Biotechnology median
P/E 112.46 n/m 10.60
P/S 6.58 n/m 9.40
P/B 13.72 4.72 2.13
Price to free cash flow 74.87 n/m 25.18
EV/EBITDA 86.75 n/m 0.66
EV/Sales 6.28 n/m 9.02
Earnings yield 0.89% (8.38%) (32.88%)
Free cash flow yield 1.34% (6.53%) (23.13%)

Profitability

Metric ARQT IRON Biotechnology median
Gross margin 91.18% 0.00% 68.51%
Operating margin 6.91% 0.00% 0.00%
Net margin 5.88% 0.00% 0.00%
Free cash flow margin 11.74% 0.00% 0.00%
Return on equity 14.88% (39.08%) (51.96%)
Return on assets 6.68% (35.12%) (46.06%)
Return on invested capital 23.48% 0.00% 0.00%

Growth

Metric ARQT IRON Biotechnology median
Revenue growth (TTM) 60.00% — 6.76%
EPS growth (last fiscal year) 88.79% (51.77%) 29.88%
Revenue growth, 5-year CAGR — — 9.75%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARQT IRON Biotechnology median
Debt to equity 0.45 0.09 0.00
Current ratio 2.92 24.14 4.97
Net debt to EBITDA 11.64 3.12 1.01

Dividend

Metric ARQT IRON Biotechnology median
Dividend yield — — 0.41%
Payout ratio — — —

Size

Metric ARQT IRON Biotechnology median
Market cap 3.39b 3.48b 161.82m

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