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 ($3.4B and $3.3B). Tarsus Pharmaceuticals, Inc. has negative trailing earnings, so its P/E is not meaningful; Arcutis Biotherapeutics, Inc. trades at 112×. Tarsus Pharmaceuticals, Inc. grew revenue faster over the last twelve months: 86.3% against 60.0%. Arcutis Biotherapeutics, Inc. has the higher net margin (5.88% vs −102.9%) and the higher return on invested capital (23.5% vs 0.00%). Across the 18 metrics below, Arcutis Biotherapeutics, Inc. leads on 13 and Tarsus Pharmaceuticals, Inc. on 5.

Valuation

Metric ARQT TARS Biotechnology median
P/E 112.46 n/m 10.60
P/S 6.58 4.68 9.40
P/B 13.72 30.71 2.13
Price to free cash flow 74.87 136.27 25.18
EV/EBITDA 86.75 n/m 0.66
EV/Sales 6.28 4.34 9.02
Earnings yield 0.89% (22.07%) (32.88%)
Free cash flow yield 1.34% 0.73% (23.13%)

Profitability

Metric ARQT TARS Biotechnology median
Gross margin 91.18% 93.21% 68.51%
Operating margin 6.91% (102.04%) 0.00%
Net margin 5.88% (102.93%) 0.00%
Free cash flow margin 11.74% 4.76% 0.00%
Return on equity 14.88% (319.84%) (51.96%)
Return on assets 6.68% (135.04%) (46.06%)
Return on invested capital 23.48% 0.00% 0.00%

Growth

Metric ARQT TARS Biotechnology median
Revenue growth (TTM) 60.00% 86.34% 6.76%
EPS growth (last fiscal year) 88.79% 48.21% 29.88%
Revenue growth, 5-year CAGR — — 9.75%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARQT TARS Biotechnology median
Debt to equity 0.45 0.70 0.00
Current ratio 2.92 1.96 4.97
Net debt to EBITDA 11.64 4.66 1.01

Dividend

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

Size

Metric ARQT TARS Biotechnology median
Market cap 3.39b 3.33b 161.82m

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