WallStSmart

Arrowhead Pharmaceuticals Inc (ARWR)vsVertex Pharmaceuticals Inc (VRTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Vertex Pharmaceuticals Inc generates 1864% more annual revenue ($12.22B vs $622.01M). VRTX leads profitability with a 35.5% profit margin vs -48.4%. VRTX earns a higher WallStSmart Score of 68/100 (B-).

ARWR

Avoid

23

out of 100

Grade: F

Growth: 6.0Profit: 2.0Value: 5.0Quality: 5.0
Piotroski: 5/9Altman Z: 0.29

VRTX

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 9.0Value: 6.7Quality: 8.5
Piotroski: 3/9Altman Z: 3.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ARWR.

VRTXUndervalued (+53.1%)

Margin of Safety

+53.1%

Fair Value

$952.53

Current Price

$446.83

$505.70 discount

UndervaluedFair: $952.53Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARWR0 strengths · Avg: 0/10

No standout strengths identified

VRTX6 strengths · Avg: 9.7/10
Profit MarginProfitability
35.5%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
38.1%10/10

Strong operational efficiency at 38.1%

EPS GrowthGrowth
61.4%10/10

Earnings expanding 61.4% YoY

Altman Z-ScoreHealth
3.6210/10

Safe zone — low bankruptcy risk

Market CapQuality
$107.89B9/10

Large-cap with strong market position

Return on EquityProfitability
22.4%9/10

Every $100 of equity generates 22 in profit

Areas to Watch

ARWR4 concerns · Avg: 2.5/10
Price/BookValuation
16.7x4/10

Trading at 16.7x book value

Return on EquityProfitability
-49.0%2/10

ROE of -49.0% — below average capital efficiency

Revenue GrowthGrowth
-86.4%2/10

Revenue declined 86.4%

Altman Z-ScoreHealth
0.292/10

Distress zone — elevated risk

VRTX3 concerns · Avg: 3.7/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

P/E RatioValuation
25.3x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ARWR

ARWR has a balanced fundamental profile.

Bull Case : VRTX

The strongest argument for VRTX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 35.5% and operating margin at 38.1%.

Bear Case : ARWR

The primary concerns for ARWR are Price/Book, Return on Equity, Revenue Growth. Debt-to-equity of 2.24 is elevated, increasing financial risk.

Bear Case : VRTX

The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

ARWR profiles as a turnaround stock while VRTX is a mature play — different risk/reward profiles.

ARWR carries more volatility with a beta of 1.27 — expect wider price swings.

VRTX is growing revenue faster at 7.8% — sustainability is the question.

VRTX generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

VRTX scores higher overall (68/100 vs 23/100), backed by strong 35.5% margins. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arrowhead Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Arrowhead Pharmaceuticals, Inc. develops drugs for the treatment of intractable diseases in the United States. The company is headquartered in Pasadena, California.

Vertex Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.

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