Comprehensive Stock Comparison
Compare Arcutis Biotherapeutics, Inc. (ARQT) vs Alkermes plc (ALKS) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | ARQT | 91.3% revenue growth vs ALKS's -5.2% |
| Value | ALKS | Lower P/E (32.0x vs 73.5x) |
| Quality / Margins | ALKS | 16.4% net margin vs ARQT's -4.3% |
| Stability / Safety | ALKS | Beta 0.61 vs ARQT's 1.08 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ARQT | +97.0% vs ALKS's -12.3% |
| Efficiency (ROA) | ALKS | 9.7% ROA vs ARQT's -3.7%, ROIC 14.9% vs -5.2% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Arcutis Biotherapeutics is a biopharmaceutical company developing and commercializing topical treatments for inflammatory skin conditions like psoriasis, eczema, and dermatitis. It generates revenue primarily from product sales of its FDA-approved roflumilast cream for plaque psoriasis — ZORYVE — with additional pipeline candidates targeting other dermatological diseases. The company's competitive advantage lies in its specialized focus on topical formulations that offer targeted delivery with fewer systemic side effects compared to oral or injectable alternatives.
Alkermes is a biopharmaceutical company that develops and commercializes medicines for central nervous system disorders and other serious conditions. It generates revenue primarily from product sales of its proprietary drugs like VIVITROL and ARISTADA — which treat addiction and schizophrenia — along with royalties from partnered products and manufacturing services. The company's competitive advantage lies in its specialized drug delivery technologies that enable long-acting injectable formulations, creating significant barriers to entry for competitors.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ALKS leads in 2 of 6 categories (Valuation Metrics, Profitability & Efficiency). ARQT leads in 1 (Total Returns). 2 tied.
Financial Metrics (TTM)
ALKS is the larger business by revenue, generating $1.5B annually — 3.9x ARQT's $376M. ALKS is the more profitable business, keeping 16.4% of every revenue dollar as net income compared to ARQT's -4.3%. On growth, ARQT holds the edge at +81.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ARQTArcutis Biotherap… | ALKSAlkermes plc |
|---|---|---|
| RevenueTrailing 12 months | $376M | $1.5B |
| EBITDAEarnings before interest/tax | -$7M | $281M |
| Net IncomeAfter-tax profit | -$16M | $242M |
| Free Cash FlowCash after capex | -$6M | $520,800 |
| Gross MarginGross profit ÷ Revenue | +90.2% | +86.3% |
| Operating MarginEBIT ÷ Revenue | -3.3% | +17.2% |
| Net MarginNet income ÷ Revenue | -4.3% | +16.4% |
| FCF MarginFCF ÷ Revenue | -1.7% | +0.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +81.5% | -10.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +2.5% | -67.0% |
Valuation Metrics
| Metric | ARQTArcutis Biotherap… | ALKSAlkermes plc |
|---|---|---|
| Market CapShares × price | $3.3B | $5.0B |
| Enterprise ValueMkt cap + debt − cash | $3.3B | $4.5B |
| Trailing P/EPrice ÷ TTM EPS | -207.46x | 21.05x |
| Forward P/EPrice ÷ next-FY EPS est. | 73.47x | 32.04x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 15.89x |
| Price / SalesMarket cap ÷ Revenue | 8.84x | 3.38x |
| Price / BookPrice ÷ Book value/share | 18.11x | 2.79x |
| Price / FCFMarket cap ÷ FCF | — | 9571.39x |
Profitability & Efficiency
ALKS delivers a 13.3% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $-9 for ARQT. ARQT carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to ALKS's 0.04x. On the Piotroski fundamental quality scale (0–9), ALKS scores 5/9 vs ARQT's 4/9, reflecting solid financial health.
| Metric | ARQTArcutis Biotherap… | ALKSAlkermes plc |
|---|---|---|
| ROE (TTM)Return on equity | -8.5% | +13.3% |
| ROA (TTM)Return on assets | -3.7% | +9.7% |
| ROICReturn on invested capital | -5.2% | +14.9% |
| ROCEReturn on capital employed | -4.3% | +14.4% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | 0.03x | 0.04x |
| Net DebtTotal debt minus cash | -$37M | -$518M |
| Cash & Equiv.Liquid assets | $43M | $588M |
| Total DebtShort + long-term debt | $6M | $70M |
| Interest CoverageEBIT ÷ Interest expense | -0.44x | 23.55x |
Total Returns (with DRIP)
A $10,000 investment in ALKS five years ago would be worth $15,677 today (with dividends reinvested), compared to $7,712 for ARQT. Over the past 12 months, ARQT leads with a +97.0% total return vs ALKS's -12.3%. The 3-year compound annual growth rate (CAGR) favors ARQT at 18.6% vs ALKS's 4.0% — a key indicator of consistent wealth creation.
| Metric | ARQTArcutis Biotherap… | ALKSAlkermes plc |
|---|---|---|
| YTD ReturnYear-to-date | -7.0% | +6.5% |
| 1-Year ReturnPast 12 months | +97.0% | -12.3% |
| 3-Year ReturnCumulative with dividends | +66.7% | +12.6% |
| 5-Year ReturnCumulative with dividends | -22.9% | +56.8% |
| 10-Year ReturnCumulative with dividends | +23.7% | -6.7% |
| CAGR (3Y)Annualised 3-year return | +18.6% | +4.0% |
Risk & Volatility
ALKS is the less volatile stock with a 0.61 beta — it tends to amplify market swings less than ARQT's 1.08 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ARQTArcutis Biotherap… | ALKSAlkermes plc |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.08x | 0.61x |
| 52-Week HighHighest price in past year | $31.77 | $36.32 |
| 52-Week LowLowest price in past year | $11.86 | $25.17 |
| % of 52W HighCurrent price vs 52-week peak | +84.9% | +82.9% |
| RSI (14)Momentum oscillator 0–100 | 59.9 | 39.0 |
| Avg Volume (50D)Average daily shares traded | 1.2M | 1.6M |
Analyst Outlook
Wall Street rates ARQT as "Buy" and ALKS as "Buy". Consensus price targets imply 52.8% upside for ALKS (target: $46) vs 23.6% for ARQT (target: $33).
| Metric | ARQTArcutis Biotherap… | ALKSAlkermes plc |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $33.33 | $46.00 |
| # AnalystsCovering analysts | 12 | 28 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 0 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Arcutis Biotherapeu… (ARQT) | 100 | 96.22 | -3.8% |
| Alkermes plc (ALKS) | 100 | 167.75 | +67.8% |
Alkermes plc (ALKS) returned +57% over 5 years vs Arcutis Biotherapeu… (ARQT)'s -23%. A $10,000 investment in ALKS 5 years ago would be worth $15,677 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Arcutis Biotherapeu… (ARQT) | $0.00 | $376M | — |
| Alkermes plc (ALKS) | $746M | $1.5B | +97.9% |
Alkermes plc's revenue grew from $746M (2016) to $1.5B (2025) — a 7.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Arcutis Biotherapeu… (ARQT) | -84.5% | -4.3% | +94.9% |
| Alkermes plc (ALKS) | -28.0% | 16.4% | +158.6% |
Alkermes plc's net margin went from -28% (2016) to 16% (2025).
Chart 4P/E Ratio History — 3 Years
| Stock | 2023 | 2025 | Change |
|---|---|---|---|
| Alkermes plc (ALKS) | 13.2 | 19.6 | +48.5% |
Alkermes plc has traded in a 13x–20x P/E range over 3 years; current trailing P/E is ~21x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Arcutis Biotherapeu… (ARQT) | -4.71 | -0.13 | +97.2% |
| Alkermes plc (ALKS) | -1.38 | 1.43 | +203.6% |
Alkermes plc's EPS grew from $-1.38 (2016) to $1.43 (2025).
Chart 6Free Cash Flow — 5 Years
Arcutis Biotherapeutics, Inc. generated $-6M FCF in 2025 (+96% vs 2021). Alkermes plc generated $1M FCF in 2025 (-99% vs 2021).
ARQT vs ALKS: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ARQT or ALKS a better buy right now?
Alkermes plc (ALKS) offers the better valuation at 21.0x trailing P/E (32.0x forward), making it the more compelling value choice. Analysts rate Arcutis Biotherapeutics, Inc. (ARQT) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ARQT or ALKS?
On forward P/E, Alkermes plc is actually cheaper at 32.0x.
03Which is the better long-term investment — ARQT or ALKS?
Over the past 5 years, Alkermes plc (ALKS) delivered a total return of +56.8%, compared to -22.9% for Arcutis Biotherapeutics, Inc. (ARQT). A $10,000 investment in ALKS five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ARQT returned +23.7% versus ALKS's -6.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ARQT or ALKS?
By beta (market sensitivity over 5 years), Alkermes plc (ALKS) is the lower-risk stock at 0.61β versus Arcutis Biotherapeutics, Inc.'s 1.08β — meaning ARQT is approximately 78% more volatile than ALKS relative to the S&P 500. On balance sheet safety, Arcutis Biotherapeutics, Inc. (ARQT) carries a lower debt/equity ratio of 3% versus 4% for Alkermes plc — giving it more financial flexibility in a downturn.
05Which has better profit margins — ARQT or ALKS?
Alkermes plc (ALKS) is the more profitable company, earning 16.4% net margin versus -4.3% for Arcutis Biotherapeutics, Inc. — meaning it keeps 16.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ALKS leads at 17.2% versus -3.3% for ARQT. At the gross margin level — before operating expenses — ARQT leads at 90.2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is ARQT or ALKS more undervalued right now?
On forward earnings alone, Alkermes plc (ALKS) trades at 32.0x forward P/E versus 73.5x for Arcutis Biotherapeutics, Inc. — 41.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ALKS: 52.8% to $46.00.
07Which pays a better dividend — ARQT or ALKS?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is ARQT or ALKS better for a retirement portfolio?
For long-horizon retirement investors, Alkermes plc (ALKS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.61)). Both have compounded well over 10 years (ALKS: -6.7%, ARQT: +23.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between ARQT and ALKS?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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