Financial Survey: BioMarin Pharmaceutical (NASDAQ:BMRN) vs. Arcutis Biotherapeutics (NASDAQ:ARQT)

BioMarin Pharmaceutical (NASDAQ:BMRN) and Arcutis Biotherapeutics (NASDAQ:ARQT) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares BioMarin Pharmaceutical and Arcutis Biotherapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BioMarin Pharmaceutical	21.45%	12.59%	10.13%
Arcutis Biotherapeutics	-35.40%	-62.62%	-25.16%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BioMarin Pharmaceutical and Arcutis Biotherapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BioMarin Pharmaceutical	0	8	14	0	2.64
Arcutis Biotherapeutics	0	1	6	0	2.86

BioMarin Pharmaceutical presently has a consensus price target of $92.60, indicating a potential upside of 66.64%. Arcutis Biotherapeutics has a consensus price target of $19.80, indicating a potential downside of 6.82%. Given BioMarin Pharmaceutical’s higher probable upside, analysts plainly believe BioMarin Pharmaceutical is more favorable than Arcutis Biotherapeutics.

Insider and Institutional Ownership

98.7% of BioMarin Pharmaceutical shares are owned by institutional investors. 0.9% of BioMarin Pharmaceutical shares are owned by company insiders. Comparatively, 9.4% of Arcutis Biotherapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares BioMarin Pharmaceutical and Arcutis Biotherapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BioMarin Pharmaceutical	$2.85 billion	3.74	$426.86 million	$3.37	16.49
Arcutis Biotherapeutics	$196.54 million	12.96	-$140.04 million	($0.75)	-28.33

BioMarin Pharmaceutical has higher revenue and earnings than Arcutis Biotherapeutics. Arcutis Biotherapeutics is trading at a lower price-to-earnings ratio than BioMarin Pharmaceutical, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

BioMarin Pharmaceutical has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Arcutis Biotherapeutics has a beta of 2.06, indicating that its share price is 106% more volatile than the S&P 500.

Summary

BioMarin Pharmaceutical beats Arcutis Biotherapeutics on 10 of the 14 factors compared between the two stocks.

About BioMarin Pharmaceutical

BioMarin Pharmaceutical Inc. develops and commercializes therapies for people with serious and life-threatening rare diseases and medical conditions. Its commercial products include Vimizim, an enzyme replacement therapy for the treatment of mucopolysaccharidosis (MPS) IV type A, a lysosomal storage disorder; Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase for patients with MPS VI; and Kuvan, a proprietary synthetic oral form of 6R-BH4 that is used to treat patients with phenylketonuria (PKU), an inherited metabolic disease. The company's commercial products also comprise Palynziq, a PEGylated recombinant phenylalanine ammonia lyase enzyme, which is delivered through subcutaneous injection to reduce blood Phe concentrations; Brineura, a recombinant human tripeptidyl peptidase 1 for the treatment of patients with ceroid lipofuscinosis type 2, a form of Batten disease; Voxzogo, a once daily injection analog of c-type natriuretic peptide for the treatment of achondroplasia; and Aldurazyme, a purified protein designed to be identical to a naturally occurring form of the human enzyme alpha-L-iduronidase. In addition, it develops Roctavian, an adeno associated virus vector, for the treatment of patients with severe hemophilia A. The company serves specialty pharmacies, hospitals, and non-U.S. government agencies, as well as distributors and pharmaceutical wholesalers in the United States, Europe, Latin America, and internationally. BioMarin Pharmaceutical Inc. has license and collaboration agreements with Sarepta Therapeutics, Ares Trading S.A., Catalyst Pharmaceutical Partners, Inc. The company was incorporated in 1996 and is headquartered in San Rafael, California.

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.