Arcutis Biotherapeutics Inc (ARQT)vsEli Lilly and Company (LLY)
ARQT
Arcutis Biotherapeutics Inc
$23.22
+3.80%
HEALTHCARE · Cap: $2.91B
LLY
Eli Lilly and Company
$934.60
+9.80%
HEALTHCARE · Cap: $760.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 17232% more annual revenue ($65.18B vs $376.07M). LLY leads profitability with a 31.7% profit margin vs -4.3%. LLY earns a higher WallStSmart Score of 78/100 (B+).
ARQT
Hold36
out of 100
Grade: F
LLY
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.2%
Fair Value
$134.09
Current Price
$23.22
$110.87 discount
Intrinsic value data unavailable for LLY.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 81.5% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.9%
Revenue surging 42.6% year-over-year
Earnings expanding 51.4% YoY
Areas to Watch
Trading at 15.1x book value
0.0% earnings growth
ROE of -9.3% — below average capital efficiency
Distress zone — elevated risk
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 31.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ARQT
The strongest argument for ARQT centers on Revenue Growth. Revenue growth of 81.5% 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 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.
Bear Case : ARQT
The primary concerns for ARQT are Price/Book, EPS Growth, Return on Equity.
Bear Case : LLY
The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.60 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 1.77 — expect wider price swings.
ARQT is growing revenue faster at 81.5% — sustainability is the question.
LLY generates stronger free cash flow (678M), providing more financial flexibility.
Bottom Line
LLY scores higher overall (78/100 vs 36/100), backed by strong 31.7% margins and 42.6% 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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