Comprehensive Stock Comparison
Compare Stoke Therapeutics, Inc. (STOK) 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 STOK's 316.3% |
| Quality / Margins | STOK | 19.7% net margin vs ARWR's 18.5% |
| Stability / Safety | STOK | Beta 0.80 vs ARWR's 1.67, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | STOK | +363.8% vs ARWR's +234.6% |
| Efficiency (ROA) | ARWR | 12.6% ROA vs STOK's 11.3%, ROIC 7.2% vs -206.8% |
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
Stoke Therapeutics is an early-stage biopharmaceutical company developing antisense oligonucleotide medicines that target the root causes of severe genetic diseases. It generates revenue primarily through research collaborations and licensing agreements — like its partnership with Acadia Pharmaceuticals — while advancing its own pipeline, including lead candidate STK-001 for Dravet syndrome. The company's key advantage is its proprietary TANGO platform, which enables precise upregulation of protein expression to address genetic deficiencies that traditional therapies cannot.
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). STOK leads in 2 (Total Returns, Risk & Volatility).
Financial Metrics (TTM)
ARWR is the larger business by revenue, generating $1.1B annually — 5.3x STOK's $206M. Profitability is closely matched — net margins range from 19.7% (STOK) to 18.5% (ARWR). On growth, ARWR holds the edge at +104.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | STOKStoke Therapeutic… | ARWRArrowhead Pharmac… |
|---|---|---|
| RevenueTrailing 12 months | $206M | $1.1B |
| EBITDAEarnings before interest/tax | $30M | $326M |
| Net IncomeAfter-tax profit | $41M | $202M |
| Free Cash FlowCash after capex | $52M | $322M |
| Gross MarginGross profit ÷ Revenue | +99.5% | +99.4% |
| Operating MarginEBIT ÷ Revenue | +13.2% | +27.6% |
| Net MarginNet income ÷ Revenue | +19.7% | +18.5% |
| FCF MarginFCF ÷ Revenue | +25.5% | +29.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +117.2% | +104.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -38.3% | +115.8% |
Valuation Metrics
| Metric | STOKStoke Therapeutic… | ARWRArrowhead Pharmac… |
|---|---|---|
| Market CapShares × price | $2.0B | $8.7B |
| Enterprise ValueMkt cap + debt − cash | $1.9B | $9.3B |
| Trailing P/EPrice ÷ TTM EPS | -22.07x | -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 | 54.90x | 10.48x |
| Price / BookPrice ÷ Book value/share | 8.59x | 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 $13 for STOK. STOK carries lower financial leverage with a 0.01x 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 STOK's 4/9, reflecting solid financial health.
| Metric | STOKStoke Therapeutic… | ARWRArrowhead Pharmac… |
|---|---|---|
| ROE (TTM)Return on equity | +13.2% | +35.9% |
| ROA (TTM)Return on assets | +11.3% | +12.6% |
| ROICReturn on invested capital | -2.1% | +7.2% |
| ROCEReturn on capital employed | -47.3% | +8.6% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | 0.01x | 1.66x |
| Net DebtTotal debt minus cash | -$126M | $611M |
| Cash & Equiv.Liquid assets | $128M | $227M |
| Total DebtShort + long-term debt | $2M | $838M |
| Interest CoverageEBIT ÷ Interest expense | 10221.67x | 3.83x |
Total Returns (with DRIP)
A $10,000 investment in ARWR five years ago would be worth $7,552 today (with dividends reinvested), compared to $5,955 for STOK. Over the past 12 months, STOK leads with a +363.8% total return vs ARWR's +234.6%. The 3-year compound annual growth rate (CAGR) favors STOK at 60.0% vs ARWR's 25.1% — a key indicator of consistent wealth creation.
| Metric | STOKStoke Therapeutic… | ARWRArrowhead Pharmac… |
|---|---|---|
| YTD ReturnYear-to-date | +17.8% | -6.7% |
| 1-Year ReturnPast 12 months | +363.8% | +234.6% |
| 3-Year ReturnCumulative with dividends | +309.6% | +95.9% |
| 5-Year ReturnCumulative with dividends | -40.4% | -24.5% |
| 10-Year ReturnCumulative with dividends | +42.4% | +1522.3% |
| CAGR (3Y)Annualised 3-year return | +60.0% | +25.1% |
Risk & Volatility
STOK is the less volatile stock with a 0.80 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. STOK currently trades 94.1% from its 52-week high vs ARWR's 82.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | STOKStoke Therapeutic… | ARWRArrowhead Pharmac… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.80x | 1.67x |
| 52-Week HighHighest price in past year | $38.69 | $76.76 |
| 52-Week LowLowest price in past year | $5.35 | $9.57 |
| % of 52W HighCurrent price vs 52-week peak | +94.1% | +82.4% |
| RSI (14)Momentum oscillator 0–100 | 62.8 | 46.7 |
| Avg Volume (50D)Average daily shares traded | 560K | 2.5M |
Analyst Outlook
Wall Street rates STOK as "Buy" and ARWR as "Buy". Consensus price targets imply 24.5% upside for ARWR (target: $79) vs 17.4% for STOK (target: $43).
| Metric | STOKStoke Therapeutic… | ARWRArrowhead Pharmac… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $42.75 | $78.78 |
| # AnalystsCovering analysts | 15 | 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 | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Stoke Therapeutics,… (STOK) | 100 | 114.34 | +14.3% |
| Arrowhead Pharmaceu… (ARWR) | 100 | 205.63 | +105.6% |
Arrowhead Pharmaceu… (ARWR) returned -24% over 5 years vs Stoke Therapeutics,… (STOK)'s -40%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Stoke Therapeutics,… (STOK) | $0.00 | $37M | — |
| Arrowhead Pharmaceu… (ARWR) | $158333.00 | $829M | +523763.0% |
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 |
|---|---|---|---|
| Stoke Therapeutics,… (STOK) | -8.1% | -2.4% | +70.1% |
| Arrowhead Pharmaceu… (ARWR) | -516.1% | -0.2% | +100.0% |
Arrowhead Pharmaceuticals, Inc.'s net margin went from -516% (2016) to -0% (2025).
Chart 4EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Stoke Therapeutics,… (STOK) | -0.24 | -1.65 | -587.5% |
| Arrowhead Pharmaceu… (ARWR) | -1.34 | -0.01 | +99.1% |
Arrowhead Pharmaceuticals, Inc.'s EPS grew from $-1.34 (2016) to $-0.01 (2025).
Chart 5Free Cash Flow — 5 Years
Stoke Therapeutics, Inc. generated $-87M FCF in 2024 (-28% vs 2021). Arrowhead Pharmaceuticals, Inc. generated $157M FCF in 2025 (+6% vs 2021).
STOK vs ARWR: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is STOK or ARWR a better buy right now?
Analysts rate Stoke Therapeutics, Inc. (STOK) a "Buy" — based on 15 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 — STOK or ARWR?
Over the past 5 years, Arrowhead Pharmaceuticals, Inc. (ARWR) delivered a total return of -24.5%, compared to -40.4% for Stoke Therapeutics, Inc. (STOK). A $10,000 investment in ARWR five years ago would be worth approximately $8K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ARWR returned +1522% versus STOK's +42.4%. 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 — STOK or ARWR?
By beta (market sensitivity over 5 years), Stoke Therapeutics, Inc. (STOK) is the lower-risk stock at 0.80β versus Arrowhead Pharmaceuticals, Inc.'s 1.67β — meaning ARWR is approximately 107% more volatile than STOK relative to the S&P 500. On balance sheet safety, Stoke Therapeutics, Inc. (STOK) carries a lower debt/equity ratio of 1% versus 166% for Arrowhead Pharmaceuticals, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — STOK or ARWR?
Arrowhead Pharmaceuticals, Inc. (ARWR) is the more profitable company, earning -0.2% net margin versus -243.4% for Stoke Therapeutics, 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 -277.3% for STOK. At the gross margin level — before operating expenses — STOK 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 — STOK 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 STOK 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%, STOK: +42.4%), 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 STOK 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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