Comprehensive Stock Comparison
Compare Arrowhead Pharmaceuticals, Inc. (ARWR) vs Wave Life Sciences Ltd. (WVE) 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 WVE's -4.4% |
| Quality / Margins | ARWR | 18.5% net margin vs WVE's -111.6% |
| Stability / Safety | WVE | Beta 1.26 vs ARWR's 1.67, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ARWR | +234.6% vs WVE's +31.8% |
| Efficiency (ROA) | ARWR | 12.6% ROA vs WVE's -50.5% |
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.
Wave Life Sciences is a clinical-stage biotechnology company developing precision genetic medicines that target the root causes of diseases. It generates revenue primarily through research collaborations and milestone payments from partners like Pfizer — with potential future income from drug sales if its pipeline succeeds. The company's key advantage is its proprietary PRISM platform, which produces stereopure oligonucleotides that offer potentially better safety and efficacy profiles than traditional genetic medicines.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ARWR leads in 3 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 2 categories are tied.
Financial Metrics (TTM)
ARWR is the larger business by revenue, generating $1.1B annually — 10.0x WVE's $109M. ARWR is the more profitable business, keeping 18.5% of every revenue dollar as net income compared to WVE's -111.6%. On growth, ARWR holds the edge at +104.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ARWRArrowhead Pharmac… | WVEWave Life Science… |
|---|---|---|
| RevenueTrailing 12 months | $1.1B | $109M |
| EBITDAEarnings before interest/tax | $326M | -$127M |
| Net IncomeAfter-tax profit | $202M | -$122M |
| Free Cash FlowCash after capex | $322M | -$198M |
| Gross MarginGross profit ÷ Revenue | +99.4% | +96.0% |
| Operating MarginEBIT ÷ Revenue | +27.6% | -124.5% |
| Net MarginNet income ÷ Revenue | +18.5% | -111.6% |
| FCF MarginFCF ÷ Revenue | +29.5% | -181.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +104.6% | +199.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +115.8% | +31.9% |
Valuation Metrics
| Metric | ARWRArrowhead Pharmac… | WVEWave Life Science… |
|---|---|---|
| Market CapShares × price | $8.7B | $2.2B |
| Enterprise ValueMkt cap + debt − cash | $9.3B | $2.0B |
| Trailing P/EPrice ÷ TTM EPS | -5186.07x | -19.90x |
| 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 | 20.62x |
| Price / BookPrice ÷ Book value/share | 16.81x | 9.19x |
| 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 $-98 for WVE. WVE carries lower financial leverage with a 0.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to ARWR's 1.66x. On the Piotroski fundamental quality scale (0–9), ARWR scores 5/9 vs WVE's 2/9, reflecting solid financial health.
| Metric | ARWRArrowhead Pharmac… | WVEWave Life Science… |
|---|---|---|
| ROE (TTM)Return on equity | +35.9% | -97.9% |
| ROA (TTM)Return on assets | +12.6% | -50.5% |
| ROICReturn on invested capital | +7.2% | — |
| ROCEReturn on capital employed | +8.6% | -67.0% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 2 |
| Debt / EquityFinancial leverage | 1.66x | 0.12x |
| Net DebtTotal debt minus cash | $611M | -$277M |
| Cash & Equiv.Liquid assets | $227M | $302M |
| Total DebtShort + long-term debt | $838M | $25M |
| Interest CoverageEBIT ÷ Interest expense | 3.83x | — |
Total Returns (with DRIP)
A $10,000 investment in WVE five years ago would be worth $13,888 today (with dividends reinvested), compared to $7,552 for ARWR. Over the past 12 months, ARWR leads with a +234.6% total return vs WVE's +31.8%. The 3-year compound annual growth rate (CAGR) favors WVE at 49.1% vs ARWR's 25.1% — a key indicator of consistent wealth creation.
| Metric | ARWRArrowhead Pharmac… | WVEWave Life Science… |
|---|---|---|
| YTD ReturnYear-to-date | -6.7% | -12.7% |
| 1-Year ReturnPast 12 months | +234.6% | +31.8% |
| 3-Year ReturnCumulative with dividends | +95.9% | +231.7% |
| 5-Year ReturnCumulative with dividends | -24.5% | +38.9% |
| 10-Year ReturnCumulative with dividends | +1522.3% | -7.4% |
| CAGR (3Y)Annualised 3-year return | +25.1% | +49.1% |
Risk & Volatility
WVE is the less volatile stock with a 1.26 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. ARWR currently trades 82.4% from its 52-week high vs WVE's 64.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ARWRArrowhead Pharmac… | WVEWave Life Science… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.67x | 1.26x |
| 52-Week HighHighest price in past year | $76.76 | $21.73 |
| 52-Week LowLowest price in past year | $9.57 | $5.28 |
| % of 52W HighCurrent price vs 52-week peak | +82.4% | +64.1% |
| RSI (14)Momentum oscillator 0–100 | 46.7 | 66.9 |
| Avg Volume (50D)Average daily shares traded | 2.5M | 3.0M |
Analyst Outlook
Wall Street rates ARWR as "Buy" and WVE as "Buy". Consensus price targets imply 129.7% upside for WVE (target: $32) vs 24.5% for ARWR (target: $79).
| Metric | ARWRArrowhead Pharmac… | WVEWave Life Science… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $78.78 | $32.00 |
| # AnalystsCovering analysts | 20 | 24 |
| 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% |
| Wave Life Sciences … (WVE) | 100 | 169.36 | +69.4% |
Wave Life Sciences … (WVE) returned +39% over 5 years vs Arrowhead Pharmaceu… (ARWR)'s -24%. A $10,000 investment in WVE 5 years ago would be worth $13,888 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Arrowhead Pharmaceu… (ARWR) | $158333.00 | $829M | +523763.0% |
| Wave Life Sciences … (WVE) | $1M | $108M | +7193.1% |
Arrowhead Pharmaceuticals, Inc.'s revenue grew from $0M (2016) to $829M (2025) — a 159.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Arrowhead Pharmaceu… (ARWR) | -516.1% | -0.2% | +100.0% |
| Wave Life Sciences … (WVE) | -37.3% | -89.6% | -140.1% |
Arrowhead Pharmaceuticals, Inc.'s net margin went from -516% (2016) to -0% (2025).
Chart 4EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Arrowhead Pharmaceu… (ARWR) | -1.34 | -0.01 | +99.1% |
| Wave Life Sciences … (WVE) | -2.43 | -0.7 | +71.2% |
Arrowhead Pharmaceuticals, Inc.'s EPS grew from $-1.34 (2016) to $-0.01 (2025).
Chart 5Free Cash Flow — 5 Years
Arrowhead Pharmaceuticals, Inc. generated $157M FCF in 2025 (+6% vs 2021). Wave Life Sciences Ltd. generated $-152M FCF in 2024 (-70% vs 2021).
ARWR vs WVE: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is ARWR or WVE 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 WVE?
Over the past 5 years, Wave Life Sciences Ltd. (WVE) delivered a total return of +38.9%, compared to -24.5% for Arrowhead Pharmaceuticals, Inc. (ARWR). A $10,000 investment in WVE five years ago would be worth approximately $14K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ARWR returned +1522% versus WVE's -7.4%. 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 WVE?
By beta (market sensitivity over 5 years), Wave Life Sciences Ltd. (WVE) is the lower-risk stock at 1.26β versus Arrowhead Pharmaceuticals, Inc.'s 1.67β — meaning ARWR is approximately 33% more volatile than WVE relative to the S&P 500. On balance sheet safety, Wave Life Sciences Ltd. (WVE) carries a lower debt/equity ratio of 12% versus 166% for Arrowhead Pharmaceuticals, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — ARWR or WVE?
Arrowhead Pharmaceuticals, Inc. (ARWR) is the more profitable company, earning -0.2% net margin versus -89.6% for Wave Life Sciences Ltd. — 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 -101.9% for WVE. At the gross margin level — before operating expenses — WVE leads at 100.0%, 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 WVE?
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 WVE 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%, WVE: -7.4%), 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 WVE?
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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