Arcutis Biotherapeutics Inc (ARQT)vsJohnson & Johnson (JNJ)
ARQT
Arcutis Biotherapeutics Inc
$31.45
-0.73%
HEALTHCARE · Cap: $3.95B
JNJ
Johnson & Johnson
$275.19
+1.53%
HEALTHCARE · Cap: $615.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 21309% more annual revenue ($99.33B vs $463.98M). JNJ leads profitability with a 16.2% profit margin vs 6.2%. JNJ trades at a lower P/E of 38.8x. JNJ earns a higher WallStSmart Score of 57/100 (C).
ARQT
Hold45
out of 100
Grade: D
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+79.2%
Fair Value
$128.09
Current Price
$31.45
$96.64 discount
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$275.19
$131.07 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 59.3% year-over-year
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Areas to Watch
Trading at 17.9x book value
0.0% earnings growth
6.2% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : ARQT
The strongest argument for ARQT centers on Revenue Growth. Revenue growth of 59.3% demonstrates continued momentum.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.
Bear Case : ARQT
The primary concerns for ARQT are Price/Book, EPS Growth, Profit Margin. A P/E of 142.9x leaves little room for execution misses.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
ARQT profiles as a hypergrowth stock while JNJ is a mature play — different risk/reward profiles.
ARQT carries more volatility with a beta of 1.58 — expect wider price swings.
ARQT is growing revenue faster at 59.3% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 45/100), backed by strong 16.2% margins. ARQT offers better value entry with a 79.2% 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.
Johnson & Johnson
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.
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