Comprehensive Stock Comparison
Compare Ionis Pharmaceuticals, Inc. (IONS) vs Arrowhead Pharmaceuticals, Inc. (ARWR) 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
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.
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.
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 | IONSIonis Pharmaceuti… | ARWRArrowhead Pharmac… |
|---|---|---|
| RevenueTrailing 12 months | $943M | $1.1B |
| EBITDAEarnings before interest/tax | -$367M | $326M |
| Net IncomeAfter-tax profit | -$381M | $202M |
| Free Cash FlowCash after capex | $162.9B | $322M |
| Gross MarginGross profit ÷ Revenue | +98.3% | +99.4% |
| Operating MarginEBIT ÷ Revenue | -40.5% | +27.6% |
| Net MarginNet income ÷ Revenue | -40.4% | +18.5% |
| FCF MarginFCF ÷ Revenue | +172.6% | +29.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | -10.4% | +104.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -113.6% | +115.8% |
Valuation Metrics
| Metric | IONSIonis Pharmaceuti… | ARWRArrowhead Pharmac… |
|---|---|---|
| Market CapShares × price | $13.3B | $8.7B |
| Enterprise ValueMkt cap + debt − cash | $15.7B | $9.3B |
| Trailing P/EPrice ÷ TTM EPS | -34.10x | -5186.07x |
| Forward P/EPrice ÷ next-FY EPS est. | — | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 76.09x |
| Price / SalesMarket cap ÷ Revenue | 14.04x | 10.48x |
| Price / BookPrice ÷ Book value/share | 26.55x | 16.81x |
| 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 | IONSIonis Pharmaceuti… | ARWRArrowhead Pharmac… |
|---|---|---|
| ROE (TTM)Return on equity | -77.9% | +35.9% |
| ROA (TTM)Return on assets | -10.8% | +12.6% |
| ROICReturn on invested capital | -12.2% | +7.2% |
| ROCEReturn on capital employed | -16.3% | +8.6% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 5 |
| Debt / EquityFinancial leverage | 5.78x | 1.66x |
| Net DebtTotal debt minus cash | $2.5B | $611M |
| Cash & Equiv.Liquid assets | $372M | $227M |
| Total DebtShort + long-term debt | $2.8B | $838M |
| Interest CoverageEBIT ÷ Interest expense | -3.53x | 3.83x |
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 | IONSIonis Pharmaceuti… | ARWRArrowhead Pharmac… |
|---|---|---|
| YTD ReturnYear-to-date | +1.9% | -6.7% |
| 1-Year ReturnPast 12 months | +144.5% | +234.6% |
| 3-Year ReturnCumulative with dividends | +126.0% | +95.9% |
| 5-Year ReturnCumulative with dividends | +50.1% | -24.5% |
| 10-Year ReturnCumulative with dividends | +134.8% | +1522.3% |
| CAGR (3Y)Annualised 3-year return | +31.2% | +25.1% |
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 | IONSIonis Pharmaceuti… | ARWRArrowhead Pharmac… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.68x | 1.67x |
| 52-Week HighHighest price in past year | $86.74 | $76.76 |
| 52-Week LowLowest price in past year | $23.95 | $9.57 |
| % of 52W HighCurrent price vs 52-week peak | +93.6% | +82.4% |
| RSI (14)Momentum oscillator 0–100 | 44.7 | 46.7 |
| Avg Volume (50D)Average daily shares traded | 1.7M | 2.5M |
Analyst Outlook
Wall Street rates IONS as "Buy" and ARWR as "Buy". Consensus price targets imply 24.5% upside for ARWR (target: $79) vs 9.8% for IONS (target: $89).
| Metric | IONSIonis Pharmaceuti… | ARWRArrowhead Pharmac… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $89.13 | $78.78 |
| # AnalystsCovering analysts | 32 | 20 |
| 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 | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Ionis Pharmaceutica… (IONS) | 100 | 163.59 | +63.6% |
| Arrowhead Pharmaceu… (ARWR) | 100 | 206.45 | +106.4% |
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 |
|---|---|---|---|
| Ionis Pharmaceutica… (IONS) | $373M | $944M | +153.2% |
| Arrowhead Pharmaceu… (ARWR) | $158333.00 | $829M | +523763.0% |
Ionis Pharmaceuticals, Inc.'s revenue grew from $373M (2016) to $944M (2025) — a 10.9% CAGR. 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 |
|---|---|---|---|
| Ionis Pharmaceutica… (IONS) | -16.2% | -40.4% | -149.1% |
| Arrowhead Pharmaceu… (ARWR) | -516.1% | -0.2% | +100.0% |
Ionis Pharmaceuticals, Inc.'s net margin went from -16% (2016) to -40% (2025). Arrowhead Pharmaceuticals, Inc.'s net margin went from -516% (2016) to -0% (2025).
Chart 4EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ionis Pharmaceutica… (IONS) | -0.72 | -2.38 | -230.6% |
| Arrowhead Pharmaceu… (ARWR) | -1.34 | -0.01 | +99.1% |
Ionis Pharmaceuticals, Inc.'s EPS grew from $-0.72 (2016) to $-2.38 (2025). Arrowhead Pharmaceuticals, Inc.'s EPS grew from $-1.34 (2016) to $-0.01 (2025).
Chart 5Free Cash Flow — 5 Years
Ionis Pharmaceuticals, Inc. generated $-320M FCF in 2025 (-2581% vs 2021). Arrowhead Pharmaceuticals, Inc. generated $157M FCF in 2025 (+6% vs 2021).
IONS vs ARWR: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is IONS or ARWR a better buy right now?
Analysts rate Ionis Pharmaceuticals, Inc. (IONS) a "Buy" — based on 32 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 — IONS or ARWR?
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 — IONS or ARWR?
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 — IONS or ARWR?
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 — IONS or ARWR?
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 IONS or ARWR 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 IONS and ARWR?
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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