WallStSmart

Arcutis Biotherapeutics Inc (ARQT)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 17070% more annual revenue ($79.67B vs $463.98M). LLY leads profitability with a 33.5% profit margin vs 6.2%. LLY trades at a lower P/E of 37.7x. LLY earns a higher WallStSmart Score of 76/100 (B+).

ARQT

Hold

47

out of 100

Grade: D+

Growth: 8.0Profit: 4.5Value: 5.7Quality: 5.0
Piotroski: 3/9Altman Z: -1.59

LLY

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARQTUndervalued (+80.2%)

Margin of Safety

+80.2%

Fair Value

$134.15

Current Price

$23.89

$110.27 discount

UndervaluedFair: $134.15Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARQT1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
59.3%10/10

Revenue surging 59.3% year-over-year

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$994.92B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
54.2%10/10

Strong operational efficiency at 54.2%

Revenue GrowthGrowth
47.7%10/10

Revenue surging 47.7% year-over-year

EPS GrowthGrowth
26.2%8/10

Earnings expanding 26.2% YoY

Areas to Watch

ARQT4 concerns · Avg: 3.5/10
Price/BookValuation
13.6x4/10

Trading at 13.6x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
6.2%3/10

6.2% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.623/10

Elevated debt levels

Price/BookValuation
29.9x2/10

Trading at 29.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ARQT

The strongest argument for ARQT centers on Revenue Growth. Revenue growth of 59.3% demonstrates continued momentum.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 33.5% and operating margin at 54.2%. Revenue growth of 47.7% demonstrates continued momentum.

Bear Case : ARQT

The primary concerns for ARQT are Price/Book, EPS Growth, Profit Margin. A P/E of 108.6x leaves little room for execution misses.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

ARQT profiles as a hypergrowth stock while LLY is a growth play — different risk/reward profiles.

ARQT carries more volatility with a beta of 1.50 — expect wider price swings.

ARQT is growing revenue faster at 59.3% — sustainability is the question.

LLY generates stronger free cash flow (7.8B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (76/100 vs 47/100), backed by strong 33.5% margins and 47.7% revenue growth. ARQT offers better value entry with a 80.2% margin of safety. Both earn "Strong 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.

Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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