Comprehensive Stock Comparison
Compare Arrowhead Pharmaceuticals, Inc. (ARWR) vs Ionis Pharmaceuticals, Inc. (IONS) 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 | ARWR | 232.6% revenue growth vs IONS's 33.9% |
| Quality / Margins | ARWR | 18.5% net margin vs IONS's -40.4% |
| Stability / Safety | IONS | Beta 0.68 vs ARWR's 1.67 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ARWR | +234.6% vs IONS's +144.5% |
| Efficiency (ROA) | ARWR | 12.6% ROA vs IONS's -10.8%, ROIC 7.2% vs -12.2% |
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
Arrowhead Pharmaceuticals is a biotechnology company that develops RNA interference (RNAi) therapeutics for intractable diseases. It generates revenue primarily through research collaborations and licensing agreements with pharmaceutical partners — including upfront payments, milestone payments, and royalties on future sales — while advancing its own pipeline of clinical-stage candidates. The company's key advantage is its proprietary Targeted RNAi Molecule (TRiM™) platform, which enables precise delivery of RNAi therapeutics to specific tissues and cells.
Ionis Pharmaceuticals is a biotech company that discovers and develops RNA-targeted therapeutics for rare diseases and other serious conditions. It generates revenue primarily through royalties from partnered drugs like SPINRAZA for spinal muscular atrophy — which contributed over 70% of total revenue in recent years — plus milestone payments and research funding from pharmaceutical partners. Its key competitive advantage is its proprietary antisense technology platform, which enables precise targeting of disease-causing RNA and has produced multiple FDA-approved therapies.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ARWR leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). IONS leads in 2 (Total Returns, Risk & Volatility).
Financial Metrics (TTM)
ARWR and IONS operate at a comparable scale, with $1.1B and $943M in trailing revenue. ARWR is the more profitable business, keeping 18.5% of every revenue dollar as net income compared to IONS's -40.4%. On growth, ARWR holds the edge at +104.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ARWRArrowhead Pharmac… | IONSIonis Pharmaceuti… |
|---|---|---|
| RevenueTrailing 12 months | $1.1B | $943M |
| EBITDAEarnings before interest/tax | $326M | -$367M |
| Net IncomeAfter-tax profit | $202M | -$381M |
| Free Cash FlowCash after capex | $322M | $162.9B |
| Gross MarginGross profit ÷ Revenue | +99.4% | +98.3% |
| Operating MarginEBIT ÷ Revenue | +27.6% | -40.5% |
| Net MarginNet income ÷ Revenue | +18.5% | -40.4% |
| FCF MarginFCF ÷ Revenue | +29.5% | +172.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +104.6% | -10.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +115.8% | -113.6% |
Valuation Metrics
| Metric | ARWRArrowhead Pharmac… | IONSIonis Pharmaceuti… |
|---|---|---|
| Market CapShares × price | $8.7B | $13.3B |
| Enterprise ValueMkt cap + debt − cash | $9.3B | $15.7B |
| Trailing P/EPrice ÷ TTM EPS | -5186.07x | -34.10x |
| Forward P/EPrice ÷ next-FY EPS est. | — | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 76.09x | — |
| Price / SalesMarket cap ÷ Revenue | 10.48x | 14.04x |
| Price / BookPrice ÷ Book value/share | 16.81x | 26.55x |
| Price / FCFMarket cap ÷ FCF | 55.41x | — |
Profitability & Efficiency
ARWR delivers a 35.9% return on equity — every $100 of shareholder capital generates $36 in annual profit, vs $-78 for IONS. ARWR carries lower financial leverage with a 1.66x debt-to-equity ratio, signaling a more conservative balance sheet compared to IONS's 5.78x. On the Piotroski fundamental quality scale (0–9), ARWR scores 5/9 vs IONS's 3/9, reflecting solid financial health.
| Metric | ARWRArrowhead Pharmac… | IONSIonis Pharmaceuti… |
|---|---|---|
| ROE (TTM)Return on equity | +35.9% | -77.9% |
| ROA (TTM)Return on assets | +12.6% | -10.8% |
| ROICReturn on invested capital | +7.2% | -12.2% |
| ROCEReturn on capital employed | +8.6% | -16.3% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 3 |
| Debt / EquityFinancial leverage | 1.66x | 5.78x |
| Net DebtTotal debt minus cash | $611M | $2.5B |
| Cash & Equiv.Liquid assets | $227M | $372M |
| Total DebtShort + long-term debt | $838M | $2.8B |
| Interest CoverageEBIT ÷ Interest expense | 3.83x | -3.53x |
Total Returns (with DRIP)
A $10,000 investment in IONS five years ago would be worth $15,014 today (with dividends reinvested), compared to $7,552 for ARWR. Over the past 12 months, ARWR leads with a +234.6% total return vs IONS's +144.5%. The 3-year compound annual growth rate (CAGR) favors IONS at 31.2% vs ARWR's 25.1% — a key indicator of consistent wealth creation.
| Metric | ARWRArrowhead Pharmac… | IONSIonis Pharmaceuti… |
|---|---|---|
| YTD ReturnYear-to-date | -6.7% | +1.9% |
| 1-Year ReturnPast 12 months | +234.6% | +144.5% |
| 3-Year ReturnCumulative with dividends | +95.9% | +126.0% |
| 5-Year ReturnCumulative with dividends | -24.5% | +50.1% |
| 10-Year ReturnCumulative with dividends | +1522.3% | +134.8% |
| CAGR (3Y)Annualised 3-year return | +25.1% | +31.2% |
Risk & Volatility
IONS is the less volatile stock with a 0.68 beta — it tends to amplify market swings less than ARWR's 1.67 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. IONS currently trades 93.6% from its 52-week high vs ARWR's 82.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ARWRArrowhead Pharmac… | IONSIonis Pharmaceuti… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.67x | 0.68x |
| 52-Week HighHighest price in past year | $76.76 | $86.74 |
| 52-Week LowLowest price in past year | $9.57 | $23.95 |
| % of 52W HighCurrent price vs 52-week peak | +82.4% | +93.6% |
| RSI (14)Momentum oscillator 0–100 | 46.7 | 44.7 |
| Avg Volume (50D)Average daily shares traded | 2.5M | 1.7M |
Analyst Outlook
Wall Street rates ARWR as "Buy" and IONS as "Buy". Consensus price targets imply 24.5% upside for ARWR (target: $79) vs 9.8% for IONS (target: $89).
| Metric | ARWRArrowhead Pharmac… | IONSIonis Pharmaceuti… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $78.78 | $89.13 |
| # AnalystsCovering analysts | 20 | 32 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| 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 | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Arrowhead Pharmaceu… (ARWR) | 100 | 205.63 | +105.6% |
| Ionis Pharmaceutica… (IONS) | 100 | 158.83 | +58.8% |
Ionis Pharmaceutica… (IONS) returned +50% over 5 years vs Arrowhead Pharmaceu… (ARWR)'s -24%. A $10,000 investment in IONS 5 years ago would be worth $15,014 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Arrowhead Pharmaceu… (ARWR) | $158333.00 | $829M | +523763.0% |
| Ionis Pharmaceutica… (IONS) | $373M | $944M | +153.2% |
Arrowhead Pharmaceuticals, Inc.'s revenue grew from $0M (2016) to $829M (2025) — a 159.0% CAGR. Ionis Pharmaceuticals, Inc.'s revenue grew from $373M (2016) to $944M (2025) — a 10.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Arrowhead Pharmaceu… (ARWR) | -516.1% | -0.2% | +100.0% |
| Ionis Pharmaceutica… (IONS) | -16.2% | -40.4% | -149.1% |
Arrowhead Pharmaceuticals, Inc.'s net margin went from -516% (2016) to -0% (2025). Ionis Pharmaceuticals, Inc.'s net margin went from -16% (2016) to -40% (2025).
Chart 4EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Arrowhead Pharmaceu… (ARWR) | -1.34 | -0.01 | +99.1% |
| Ionis Pharmaceutica… (IONS) | -0.72 | -2.38 | -230.6% |
Arrowhead Pharmaceuticals, Inc.'s EPS grew from $-1.34 (2016) to $-0.01 (2025). Ionis Pharmaceuticals, Inc.'s EPS grew from $-0.72 (2016) to $-2.38 (2025).
Chart 5Free Cash Flow — 5 Years
Arrowhead Pharmaceuticals, Inc. generated $157M FCF in 2025 (+6% vs 2021). Ionis Pharmaceuticals, Inc. generated $-320M FCF in 2025 (-2581% vs 2021).
ARWR vs IONS: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is ARWR or IONS a better buy right now?
Analysts rate Arrowhead Pharmaceuticals, Inc. (ARWR) a "Buy" — based on 20 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 is the better long-term investment — ARWR or IONS?
Over the past 5 years, Ionis Pharmaceuticals, Inc. (IONS) delivered a total return of +50.1%, compared to -24.5% for Arrowhead Pharmaceuticals, Inc. (ARWR). A $10,000 investment in IONS five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ARWR returned +1522% versus IONS's +134.8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — ARWR or IONS?
By beta (market sensitivity over 5 years), Ionis Pharmaceuticals, Inc. (IONS) is the lower-risk stock at 0.68β versus Arrowhead Pharmaceuticals, Inc.'s 1.67β — meaning ARWR is approximately 145% more volatile than IONS relative to the S&P 500. On balance sheet safety, Arrowhead Pharmaceuticals, Inc. (ARWR) carries a lower debt/equity ratio of 166% versus 6% for Ionis Pharmaceuticals, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — ARWR or IONS?
Arrowhead Pharmaceuticals, Inc. (ARWR) is the more profitable company, earning -0.2% net margin versus -40.4% for Ionis Pharmaceuticals, Inc. — meaning it keeps -0.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARWR leads at 11.9% versus -40.5% for IONS. At the gross margin level — before operating expenses — IONS leads at 98.3%, 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.
05Which pays a better dividend — ARWR or IONS?
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.
06Is ARWR or IONS better for a retirement portfolio?
For long-horizon retirement investors, Arrowhead Pharmaceuticals, Inc. (ARWR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1522% 10Y return). Both have compounded well over 10 years (ARWR: +1522%, IONS: +134.8%), 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.
07What are the main differences between ARWR and IONS?
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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