Arcutis Biotherapeutics, Inc. (ARQT) vs Tarsus Pharmaceuticals, Inc. (TARS)

Arcutis Biotherapeutics, Inc. and Tarsus Pharmaceuticals, Inc. are both Biotechnology companies. Arcutis Biotherapeutics, Inc. and Tarsus Pharmaceuticals, Inc. are of similar size ($3.6B and $3.4B). Tarsus Pharmaceuticals, Inc. has negative trailing earnings, so its P/E is not meaningful; Arcutis Biotherapeutics, Inc. trades at 122×. Tarsus Pharmaceuticals, Inc. grew revenue faster over the last twelve months: 105.2% against 76.1%. Arcutis Biotherapeutics, Inc. has the higher net margin (6.15% vs −7.67%) and the higher return on invested capital (23.6% vs 0.00%). Across the 18 metrics below, Tarsus Pharmaceuticals, Inc. leads on 11 and Arcutis Biotherapeutics, Inc. on 7.

Valuation

Metric ARQT TARS Biotechnology median
P/E 122.36 n/m 7.88
P/S 7.57 5.42 11.47
P/B 15.93 9.47 2.52
Price to free cash flow 145.96 69.88 21.16
EV/EBITDA 95.16 n/m 0.74
EV/Sales 7.29 4.80 10.73
Earnings yield 0.82% (1.44%) (28.84%)
Free cash flow yield 0.69% 1.43% (23.03%)

Profitability

Metric ARQT TARS Biotechnology median
Gross margin 91.14% 93.28% 65.16%
Operating margin 7.38% (8.00%) 0.00%
Net margin 6.15% (7.67%) 0.00%
Free cash flow margin 8.42% 9.24% 0.00%
Return on equity 15.86% (13.68%) (57.72%)
Return on assets 6.78% (8.40%) (49.22%)
Return on invested capital 23.62% 0.00% 0.00%

Growth

Metric ARQT TARS Biotechnology median
Revenue growth (TTM) 76.11% 105.17% 5.64%
EPS growth (last fiscal year) 88.79% 48.21% —
Revenue growth, 5-year CAGR — — 8.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARQT TARS Biotechnology median
Debt to equity 0.49 0.21 0.00
Current ratio 2.92 3.20 4.73
Net debt to EBITDA 11.64 4.66 0.96

Dividend

Metric ARQT TARS Biotechnology median
Dividend yield — — 2.10%
Payout ratio 0.00 0.00 0.00

Size

Metric ARQT TARS Biotechnology median
Market cap 3.39b 3.55b 162.10m

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