Comprehensive Stock Comparison
Compare United Therapeutics Corporation (UTHR) vs Arcutis Biotherapeutics, Inc. (ARQT) 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 UTHR's 10.6% |
| Value | UTHR | Lower P/E (16.9x vs 73.5x) |
| Quality / Margins | UTHR | 41.9% net margin vs ARQT's -4.3% |
| Stability / Safety | UTHR | Beta 0.43 vs ARQT's 1.08 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ARQT | +97.0% vs UTHR's +57.4% |
| Efficiency (ROA) | UTHR | 16.9% ROA vs ARQT's -3.7%, ROIC 21.1% 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
United Therapeutics is a biotechnology company focused on developing and commercializing therapies for pulmonary arterial hypertension and other rare diseases. It generates revenue primarily from its portfolio of PAH treatments — including Remodulin, Tyvaso, and Orenitram — which account for the vast majority of its sales. The company's competitive advantage lies in its deep expertise in prostacyclin therapies and its vertically integrated manufacturing capabilities for complex drug delivery systems.
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.
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
UTHR leads in 4 of 6 categories — strongest in Valuation Metrics and Profitability & Efficiency. 1 category is tied.
Financial Metrics (TTM)
UTHR is the larger business by revenue, generating $3.2B annually — 8.5x ARQT's $376M. UTHR is the more profitable business, keeping 41.9% 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 | UTHRUnited Therapeuti… | ARQTArcutis Biotherap… |
|---|---|---|
| RevenueTrailing 12 months | $3.2B | $376M |
| EBITDAEarnings before interest/tax | $1.6B | -$7M |
| Net IncomeAfter-tax profit | $1.3B | -$16M |
| Free Cash FlowCash after capex | $1.0B | -$6M |
| Gross MarginGross profit ÷ Revenue | +87.9% | +90.2% |
| Operating MarginEBIT ÷ Revenue | +46.9% | -3.3% |
| Net MarginNet income ÷ Revenue | +41.9% | -4.3% |
| FCF MarginFCF ÷ Revenue | +32.7% | -1.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +7.4% | +81.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +23.7% | +2.5% |
Valuation Metrics
| Metric | UTHRUnited Therapeuti… | ARQTArcutis Biotherap… |
|---|---|---|
| Market CapShares × price | $22.0B | $3.3B |
| Enterprise ValueMkt cap + debt − cash | $20.4B | $3.3B |
| Trailing P/EPrice ÷ TTM EPS | 18.09x | -207.46x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.90x | 73.47x |
| PEG RatioP/E ÷ EPS growth rate | 0.94x | — |
| EV / EBITDAEnterprise value multiple | 12.95x | — |
| Price / SalesMarket cap ÷ Revenue | 6.91x | 8.84x |
| Price / BookPrice ÷ Book value/share | 3.40x | 18.11x |
| Price / FCFMarket cap ÷ FCF | 21.13x | — |
Profitability & Efficiency
UTHR delivers a 18.8% return on equity — every $100 of shareholder capital generates $19 in annual profit, vs $-9 for ARQT. On the Piotroski fundamental quality scale (0–9), UTHR scores 7/9 vs ARQT's 4/9, reflecting strong financial health.
| Metric | UTHRUnited Therapeuti… | ARQTArcutis Biotherap… |
|---|---|---|
| ROE (TTM)Return on equity | +18.8% | -8.5% |
| ROA (TTM)Return on assets | +16.9% | -3.7% |
| ROICReturn on invested capital | +21.1% | -5.2% |
| ROCEReturn on capital employed | +21.4% | -4.3% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 4 |
| Debt / EquityFinancial leverage | — | 0.03x |
| Net DebtTotal debt minus cash | -$1.6B | -$37M |
| Cash & Equiv.Liquid assets | $1.6B | $43M |
| Total DebtShort + long-term debt | $0 | $6M |
| Interest CoverageEBIT ÷ Interest expense | 88.89x | -0.44x |
Total Returns (with DRIP)
A $10,000 investment in UTHR five years ago would be worth $29,421 today (with dividends reinvested), compared to $7,712 for ARQT. Over the past 12 months, ARQT leads with a +97.0% total return vs UTHR's +57.4%. The 3-year compound annual growth rate (CAGR) favors UTHR at 27.0% vs ARQT's 18.6% — a key indicator of consistent wealth creation.
| Metric | UTHRUnited Therapeuti… | ARQTArcutis Biotherap… |
|---|---|---|
| YTD ReturnYear-to-date | +1.4% | -7.0% |
| 1-Year ReturnPast 12 months | +57.4% | +97.0% |
| 3-Year ReturnCumulative with dividends | +104.8% | +66.7% |
| 5-Year ReturnCumulative with dividends | +194.2% | -22.9% |
| 10-Year ReturnCumulative with dividends | +313.2% | +23.7% |
| CAGR (3Y)Annualised 3-year return | +27.0% | +18.6% |
Risk & Volatility
UTHR is the less volatile stock with a 0.43 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. UTHR currently trades 93.8% from its 52-week high vs ARQT's 84.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | UTHRUnited Therapeuti… | ARQTArcutis Biotherap… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.43x | 1.08x |
| 52-Week HighHighest price in past year | $537.00 | $31.77 |
| 52-Week LowLowest price in past year | $266.98 | $11.86 |
| % of 52W HighCurrent price vs 52-week peak | +93.8% | +84.9% |
| RSI (14)Momentum oscillator 0–100 | 58.6 | 59.9 |
| Avg Volume (50D)Average daily shares traded | 274K | 1.2M |
Analyst Outlook
Wall Street rates UTHR as "Buy" and ARQT as "Buy". Consensus price targets imply 23.6% upside for ARQT (target: $33) vs 11.8% for UTHR (target: $563).
| Metric | UTHRUnited Therapeuti… | ARQTArcutis Biotherap… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $563.17 | $33.33 |
| # AnalystsCovering analysts | 30 | 12 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +4.5% | 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 |
|---|---|---|---|
| United Therapeutics… (UTHR) | 100 | 457.48 | +357.5% |
| Arcutis Biotherapeu… (ARQT) | 100 | 93.32 | -6.7% |
United Therapeutics… (UTHR) returned +194% over 5 years vs Arcutis Biotherapeu… (ARQT)'s -23%. A $10,000 investment in UTHR 5 years ago would be worth $29,421 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| United Therapeutics… (UTHR) | $1.6B | $3.2B | +99.1% |
| Arcutis Biotherapeu… (ARQT) | $0.00 | $376M | — |
United Therapeutics Corporation's revenue grew from $1.6B (2016) to $3.2B (2025) — a 7.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| United Therapeutics… (UTHR) | 44.6% | 41.9% | -6.1% |
| Arcutis Biotherapeu… (ARQT) | -84.5% | -4.3% | +94.9% |
United Therapeutics Corporation's net margin went from 45% (2016) to 42% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| United Therapeutics… (UTHR) | 15.9 | 17.5 | +10.1% |
United Therapeutics Corporation has traded in a 8x–22x P/E range over 8 years; current trailing P/E is ~18x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| United Therapeutics… (UTHR) | 15.25 | 27.86 | +82.7% |
| Arcutis Biotherapeu… (ARQT) | -4.71 | -0.13 | +97.2% |
United Therapeutics Corporation's EPS grew from $15.25 (2016) to $27.86 (2025) — a 7% CAGR.
Chart 6Free Cash Flow — 5 Years
United Therapeutics Corporation generated $1B FCF in 2025 (+118% vs 2021). Arcutis Biotherapeutics, Inc. generated $-6M FCF in 2025 (+96% vs 2021).
UTHR vs ARQT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is UTHR or ARQT a better buy right now?
United Therapeutics Corporation (UTHR) offers the better valuation at 18.1x trailing P/E (16.9x forward), making it the more compelling value choice. Analysts rate United Therapeutics Corporation (UTHR) a "Buy" — based on 30 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 — UTHR or ARQT?
On forward P/E, United Therapeutics Corporation is actually cheaper at 16.9x.
03Which is the better long-term investment — UTHR or ARQT?
Over the past 5 years, United Therapeutics Corporation (UTHR) delivered a total return of +194.2%, compared to -22.9% for Arcutis Biotherapeutics, Inc. (ARQT). A $10,000 investment in UTHR five years ago would be worth approximately $29K today (assuming dividends reinvested). Over 10 years, the gap is even starker: UTHR returned +313.2% versus ARQT's +23.7%. 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 — UTHR or ARQT?
By beta (market sensitivity over 5 years), United Therapeutics Corporation (UTHR) is the lower-risk stock at 0.43β versus Arcutis Biotherapeutics, Inc.'s 1.08β — meaning ARQT is approximately 149% more volatile than UTHR relative to the S&P 500.
05Which has better profit margins — UTHR or ARQT?
United Therapeutics Corporation (UTHR) is the more profitable company, earning 41.9% net margin versus -4.3% for Arcutis Biotherapeutics, Inc. — meaning it keeps 41.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UTHR leads at 46.9% 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 UTHR or ARQT more undervalued right now?
On forward earnings alone, United Therapeutics Corporation (UTHR) trades at 16.9x forward P/E versus 73.5x for Arcutis Biotherapeutics, Inc. — 56.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARQT: 23.6% to $33.33.
07Which pays a better dividend — UTHR or ARQT?
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 UTHR or ARQT better for a retirement portfolio?
For long-horizon retirement investors, United Therapeutics Corporation (UTHR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.43), +313.2% 10Y return). Both have compounded well over 10 years (UTHR: +313.2%, 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 UTHR and ARQT?
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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