Analyzing Arcutis Biotherapeutics (NASDAQ:ARQT) and Ascend Wellness (OTCMKTS:AAWH)

Arcutis Biotherapeutics (NASDAQ:ARQT) and Ascend Wellness (OTCMKTS:AAWH) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Volatility and Risk

Arcutis Biotherapeutics has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Ascend Wellness has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares Arcutis Biotherapeutics and Ascend Wellness”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcutis Biotherapeutics	$376.07 million	10.43	-$16.14 million	$0.21	148.57
Ascend Wellness	$500.58 million	0.17	-$118.19 million	($0.57)	-0.71

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

Analyst Ratings

This is a summary of current ratings and price targets for Arcutis Biotherapeutics and Ascend Wellness, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcutis Biotherapeutics	0	3	8	0	2.73
Ascend Wellness	0	1	0	0	2.00

Arcutis Biotherapeutics currently has a consensus price target of $38.00, suggesting a potential upside of 21.79%. Given Arcutis Biotherapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Arcutis Biotherapeutics is more favorable than Ascend Wellness.

Institutional and Insider Ownership

17.3% of Ascend Wellness shares are held by institutional investors. 9.4% of Arcutis Biotherapeutics shares are held by company insiders. Comparatively, 21.9% of Ascend Wellness shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Arcutis Biotherapeutics and Ascend Wellness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcutis Biotherapeutics	6.15%	15.05%	6.51%
Ascend Wellness	-23.31%	N/A	-10.85%

Summary

Arcutis Biotherapeutics beats Ascend Wellness on 11 of the 14 factors compared between the two stocks.

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.

About Ascend Wellness

Ascend Wellness Holdings, Inc. engages in the cultivation, manufacture, and distribution of cannabis consumer packaged goods in the United States. The company offers flower, pre-rolls, concentrates, vapes, edibles, tinctures, and other cannabis-related products under the Common Goods, SimplyHerb, Ozone, Ozone Reserve, Royale, Tunnel Vision, Miss Grass, Lowell Smokes, Edie Parker, 1906, and AiroPro brands. It also owns, operates, and manages cannabis cultivation facilities and dispensaries. The company sells its products through company-owned retail stores and third-party licensed retail cannabis stores. Ascend Wellness Holdings, Inc. was incorporated in 2018 and is headquartered in New York, New York.