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ARQT vs MRK

ARQT
Arcutis Biotherapeutics, Inc.
BEARISH
Price
$22.75
Market Cap
$2.82B
Sector
Healthcare
AI Confidence
85%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
ARQT
--
MRK
16.66
Forward P/E
ARQT
17.79
MRK
12.42
P/B Ratio
ARQT
14.81
MRK
5.7
P/S Ratio
ARQT
7.5
MRK
4.61
EV/EBITDA
ARQT
-359.13
MRK
11.46

Profitability

Gross Margin
ARQT
90.24%
MRK
77.21%
Operating Margin
ARQT
14.2%
MRK
32.77%
Profit Margin
ARQT
-4.29%
MRK
28.08%
ROE
ARQT
-9.3%
MRK
36.88%
ROA
ARQT
-1.96%
MRK
12.04%

Growth

Revenue Growth
ARQT
81.5%
MRK
5.0%
Earnings Growth
ARQT
--
MRK
-19.3%

Financial Health

Debt/Equity
ARQT
0.6
MRK
0.96
Current Ratio
ARQT
3.17
MRK
1.54
Quick Ratio
ARQT
2.83
MRK
0.96

Dividends

Dividend Yield
ARQT
--
MRK
2.83%
Payout Ratio
ARQT
0.0%
MRK
45.05%

AI Verdict

ARQT BEARISH

ARQT's Piotroski F-Score of 1/9 indicates severe financial distress, with weak profitability, negative ROE and ROA, and no dividend, signaling poor operational health. Despite strong revenue growth of 81.5% YoY and a forward P/E of 17.79, the company remains unprofitable with a negative profit margin of -4.29% and no intrinsic value or Graham Number available. Insider selling totaling $5.12M in the last six months, including significant sales by the CEO and directors, reinforces bearish sentiment. The stock trades at a premium to its fundamentals, with a Price/Sales of 7.50 and Price/Book of 14.81, suggesting overvaluation relative to earnings and book value. Analysts' strong_buy consensus appears disconnected from the underlying financial deterioration.

Strengths
81.5% YoY revenue growth indicates strong market expansion and product demand
High gross margin of 90.24% reflects efficient production and pricing power
Strong current and quick ratios (3.17 and 2.83) suggest solid short-term liquidity
Risks
Piotroski F-Score of 1/9 signals extreme financial weakness and operational instability
Negative ROE (-9.30%) and ROA (-1.96%) indicate poor capital efficiency and unprofitability
Insider selling of $5.12M in 6 months, including CEO and directors, raises governance concerns
MRK NEUTRAL

MRK shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.1% margin)
Strong ROE of 36.9%
Risks
Premium vs Graham Number ($59.01)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

ARQT vs MRK: Head-to-Head Comparison

This page compares Arcutis Biotherapeutics, Inc. (ARQT) and Merck & Co., Inc. (MRK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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