WallStSmart

Arcutis Biotherapeutics Inc (ARQT)vsAstraZeneca PLC (AZN)

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Smart Verdict

WallStSmart Research — data-driven comparison

AstraZeneca PLC generates 15519% more annual revenue ($58.74B vs $376.07M). AZN leads profitability with a 17.4% profit margin vs -4.3%. AZN earns a higher WallStSmart Score of 64/100 (C+).

ARQT

Hold

36

out of 100

Grade: F

Growth: 8.0Profit: 3.0Value: 6.7Quality: 5.8
Piotroski: 4/9Altman Z: -2.08

AZN

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 5.3Quality: 5.0
Piotroski: 6/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARQTUndervalued (+80.2%)

Margin of Safety

+80.2%

Fair Value

$134.09

Current Price

$23.22

$110.87 discount

UndervaluedFair: $134.09Overvalued
AZNUndervalued (+4.1%)

Margin of Safety

+4.1%

Fair Value

$214.51

Current Price

$187.37

$27.14 discount

UndervaluedFair: $214.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARQT1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
81.5%10/10

Revenue surging 81.5% year-over-year

AZN5 strengths · Avg: 9.0/10
Market CapQuality
$287.11B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
53.9%10/10

Earnings expanding 53.9% YoY

Return on EquityProfitability
22.8%9/10

Every $100 of equity generates 23 in profit

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

Free Cash FlowQuality
$1.38B8/10

Generating 1.4B in free cash flow

Areas to Watch

ARQT4 concerns · Avg: 3.0/10
Price/BookValuation
15.1x4/10

Trading at 15.1x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-9.3%2/10

ROE of -9.3% — below average capital efficiency

Altman Z-ScoreHealth
-2.082/10

Distress zone — elevated risk

AZN4 concerns · Avg: 3.5/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

P/E RatioValuation
27.9x4/10

Moderate valuation

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ARQT

The strongest argument for ARQT centers on Revenue Growth. Revenue growth of 81.5% demonstrates continued momentum.

Bull Case : AZN

The strongest argument for AZN centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 17.4% and operating margin at 21.6%.

Bear Case : ARQT

The primary concerns for ARQT are Price/Book, EPS Growth, Return on Equity.

Bear Case : AZN

The primary concerns for AZN are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

ARQT profiles as a hypergrowth stock while AZN is a value play — different risk/reward profiles.

ARQT carries more volatility with a beta of 1.77 — expect wider price swings.

ARQT is growing revenue faster at 81.5% — sustainability is the question.

AZN generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

AZN scores higher overall (64/100 vs 36/100), backed by strong 17.4% margins. ARQT offers better value entry with a 80.2% margin of safety. 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.

Arcutis Biotherapeutics Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. The company is headquartered in Westlake Village, California.

AstraZeneca PLC

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

AstraZeneca PLC discovers, develops, manufactures and markets prescription drugs in the areas of oncology, cardiovascular, renal and metabolism, respiratory, infections, neuroscience and gastroenterology worldwide. The company is headquartered in Cambridge, the United Kingdom.

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