Arcutis Biotherapeutics (NASDAQ:ARQT) and Iterum Therapeutics (NASDAQ:ITRM) Head to Head Contrast

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

Analyst Ratings

This is a breakdown of recent ratings for Arcutis Biotherapeutics and Iterum Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcutis Biotherapeutics	0	3	6	0	2.67
Iterum Therapeutics	1	2	0	0	1.67

Arcutis Biotherapeutics currently has a consensus price target of $35.57, indicating a potential upside of 32.31%. Given Arcutis Biotherapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Arcutis Biotherapeutics is more favorable than Iterum Therapeutics.

Volatility & Risk

Arcutis Biotherapeutics has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Iterum Therapeutics has a beta of 2.96, indicating that its share price is 196% more volatile than the S&P 500.

Earnings & Valuation

This table compares Arcutis Biotherapeutics and Iterum Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcutis Biotherapeutics	$376.07 million	8.99	-$16.14 million	$0.21	128.02
Iterum Therapeutics	$390,000.00	4.10	-$24.77 million	($0.75)	-0.04

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

Profitability

This table compares Arcutis Biotherapeutics and Iterum Therapeutics’ 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%
Iterum Therapeutics	N/A	N/A	-65.54%

Insider and Institutional Ownership

9.2% of Iterum Therapeutics shares are held by institutional investors. 9.4% of Arcutis Biotherapeutics shares are held by company insiders. Comparatively, 2.0% of Iterum Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Arcutis Biotherapeutics beats Iterum Therapeutics on 12 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 Iterum Therapeutics

Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and intravenous formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.