Rhythm Pharmaceuticals (NASDAQ:RYTM – Get Free Report) and Arcutis Biotherapeutics (NASDAQ:ARQT – Get Free Report) are both mid-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.
Volatility & Risk
Rhythm Pharmaceuticals has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500. Comparatively, Arcutis Biotherapeutics has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Rhythm Pharmaceuticals and Arcutis Biotherapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rhythm Pharmaceuticals | 1 | 1 | 15 | 1 | 2.89 |
| Arcutis Biotherapeutics | 1 | 2 | 6 | 0 | 2.56 |
Profitability
This table compares Rhythm Pharmaceuticals and Arcutis Biotherapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rhythm Pharmaceuticals | -110.32% | -433.21% | -46.38% |
| Arcutis Biotherapeutics | -13.94% | -29.69% | -12.52% |
Earnings and Valuation
This table compares Rhythm Pharmaceuticals and Arcutis Biotherapeutics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rhythm Pharmaceuticals | $130.13 million | 52.10 | -$260.60 million | ($3.10) | -32.77 |
| Arcutis Biotherapeutics | $196.54 million | 18.44 | -$140.04 million | ($0.36) | -82.17 |
Arcutis Biotherapeutics has higher revenue and earnings than Rhythm Pharmaceuticals. Arcutis Biotherapeutics is trading at a lower price-to-earnings ratio than Rhythm Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
Rhythm Pharmaceuticals beats Arcutis Biotherapeutics on 7 of the 13 factors compared between the two stocks.
About Rhythm Pharmaceuticals
Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is in Phase 3 clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, and other MC4R disorders. The company has licensing agreements with LG Chem, Ltd; Ipsen Pharma S.A.S; Camurus; RareStone Group Ltd.; and LG Chem, Ltd. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.
About Arcutis Biotherapeutics
Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical trials for the treatment of plaque psoriasis and atopic dermatitis. The company is also developing ARQ-154, a topical ZORYVE for the treatment of scalp and body psoriasis and seborrheic dermatitis; ARQ-252, a selective topical janus kinase type 1 inhibitor for hand eczema and vitiligo; ARQ-255, a topical JAK1 inhibitor for alopecia areata; and ARQ-234, a CD200R fusion protein for the treatment of moderate-to-severe atopic dermatitis. The company was formerly known as Arcutis, Inc. and changed its name to Arcutis Biotherapeutics, Inc. in October 2019. Arcutis Biotherapeutics, Inc. was incorporated in 2016 and is headquartered in Westlake Village, California.
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